regional blocks in promotion of world trade - sumit sharma

7/28/2019 Regional Blocks in Promotion of World Trade - Sumit Sharma

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Regional Blocks in promotion of worldtrade:A review of some success stories

Sumit Sharma

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Definition :

Regional trade blocks are intergovernmental

associations that manage and promote tradeactivities for specific regions of the world

They have political as well as political

implications for example the European union ,the worlds largest trading block has harboredpolitical ambitions. The Maastricht treaty whichgave birth to EU calls for joint policies in regardto military , defense, and citizenship


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MAJOR TRADE BLOCKS

1) EUROPEAN UNION (EU) 2) NORTH AMERICAN FREE TRADE AGREEMENT

(NAFTA) 3)SINGAPORE AMERICAN FREE TRADE

AGREEMENT(SAFTA) 4) ORGANISATION OF PETROLEUM EXPORTING

COUNTRIES (OPEC) 5) ASSOCIATION OF SOUTH EAST ASIAN NATION

(ASEAN) 6) SOUTH ASIAN ASSOCIATION OF REGIONAL CO-

OPERATION (SAARC)


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DEBATE ON TRADING BLOCKS

THERE ARE TWO VIEWS :

1)ANALYST LIKE PREEG ARGUE THATTRADE BLOCS ARE DESIRABLE BECAUSE

THEY COMPLIMENT GLOBAL TRADE. 2)OTHER ANALYST ARGUE THAT TRADE

BLOCS ARE NOT DESIRABLE BECAUSETHEY ARE THREAT TO FREE TRADE AND

NEED TO PROTECTIONISM


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WHY TRADE BLOCS AREDESIRABLE

TRADE BLOCS COMPLIMENT GLOBALTRADE

THEY PROTECT INTRA REGIONALTRADE FORM OUTSIDE FORCES.

THEY ESTABLISH REGIONAL

SECURITY.


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WHY T. B. ARE UNDESIRABLE IMPORT QUOTAS(LIMITING THE AMOUNT OF

IMPORTS INTO THE COUNTRY SO THATDOMESTIC CONSUMERS BUY PRODUCTS MADEBY THEIR COUNTRIES IN THEIR REGION).

CUSTOM DELAYS (ESTABLISHINGBUREAUCRATIC FORMALITIES THAT SLOWDOWN TRADE FROM THE OTHER REGION)

SUBSIDIES BARRIER (GIVING HEAVY

SUBSIDIES TO PROTECT REGIONAL TRADE ) VOLUNTRY BOYCOTTS AND TECHNICAL

BARRIERS.


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The Organization of the PetroleumExporting Countries (OPEC)

History: The Organization of the Petroleum

Exporting Countries (OPEC) is apermanent, intergovernmentalOrganization, created at the BaghdadConference on September 1014,1960.

Functions: The OPEC MCs coordinate their oil

production policies in order to helpstabilise the oil market and to help oilproducers achieve a reasonable rate ofreturn on their investments. This policyis also designed to ensure that oilconsumers continue to receive stablesupplies of oil.


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OPEC FUND: The OPEC Fund forInternational Development is amultilateral development financeinstitution. It was established inJanuary 1976, by the membercountries of the Organization of

the Petroleum ExportingCountries.


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OPEC Secretariat

The Secretariat carries out the executivefunctions of the Organization inaccordance with the provisions of the

OPEC Statute and under the direction ofthe Board of Governors

Members: Algeria, Angola, Indonesia,Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,

Saudi Arabia, UAE, Venezuela.


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The Organization of the PetroleumExporting Countries (OPEC)

ITS A PERMANENT ORGANIZATION ESTABLISHED IN1960 AT THE BAGHDAD CONFERENCE BY IRAN IRAQ,KUWAIT, SAUDI ARABIA, AND VENEZUELA.

IT WAS LATER JOINED 8 OTHER MEMBERS.

ITS HEAD QUARTER IS IN VIENNA. ITS OBJECTIVE IS TO COORDINATE AND UNIFY

PETROLEUM POLICIES AMONGS THE MEMBERCOUNTRIES

TO SECURE FAIR AND STABLE PRICES FOR

PETROLEUM PRODUCERS. PROPER PRICE AND REGULAR SUPPLY OF PETROLEUM

FOR CONSUMING NATIONS.


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ASEANwww.aseansec.org

ESTABLISHED IN 1967 . 5 FOUNDING MEMBERS : INDONESIA , MALAYASIA,

PHILLIPINES, SINGAPORE AND THILAND. LATER ON JOINED BY BRUNEI, MYANMAR,VIETNAM

ETC. ASEAN FREE TRADE AREA (AFTA) . ASEAN BEYOND TRADE HAS POLITICAL ROLE AS

VISIBLE BY THE FORMATION OF ASEAN REGIONALFORUM OF WHICH CHINA, INDIA AND USA AREMEMBERS.

ASEAN AS A TRADING BLOC HAS BEEN A HUGESUCCESS LEADING TO PROSPERITY ANDELIMINATION OF POVERTY IN THE MEMBER COUNTRY
http://www.aseansec.org/http://www.aseansec.org/


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http://brunei.gov.bn/http://www.aseansec.org/7095.htmhttp://www.mofa.gov.vn/enhttp://www.thaigov.go.th/index_eng.htmhttp://www.gov.sg/http://www.gov.ph/http://www.myanmar.com/http://www.pmo.gov.my/http://www.mfa.laogov.net/http://www.indonesia.go.id/http://www.mfaic.gov.kh/http://brunei.gov.bn/http://localhost/var/data/img/summit12.jpghttp://localhost/var/data/img/summit1.jpg


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SAARC
http://localhost/var/data/img/summit12.jpghttp://localhost/var/data/img/summit1.jpg


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SAARC (SOUTH ASIAN ASSOCIATION FOR

REGIONAL COOPERATION)


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The South Asian Association for RegionalCooperation (SAARC) was established whenits Charter was formally adopted onDecember 8, 1985 by the Heads of State orGovernment of Bangladesh, Bhutan, India,Maldives, Nepal, Pakistan and Sri Lanka.

SAARC provides a platform for the peoplesof South Asia to work together in a spirit of

friendship, trust and understanding. It aimsto accelerate the process of economic andsocial development in Member States.


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AREAS OF COOPERATION

Agriculture and Rural Development;

Health and Population Activities;

Women, Youth and Children;

Environment and Forestry;

Science and Technology and Meteorology;

Human Resources Development; and

Transport.

Recently, high level Working Groups have also beenestablished to strengthen cooperation in the areas ofInformation and Communications Technology,Biotechnology, Intellectual Property Rights, Tourism,and Energy.


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Fourteenth SAARC Summit

The President of the Islamic Republic of Afghanistan, HisExcellency Mr. Hamid Karzai; the Chief Adviser of theGovernment of the Peoples Republic of Bangladesh, HisExcellency Dr. Fakhruddin Ahmed; the Prime Minister of theKingdom of Bhutan, His Excellency Lyonpo Khandu

Wangchuk; the Prime Minister of the Republic of India, HisExcellency Dr. Manmohan Singh; the President of theRepublic of Maldives, His Excellency Mr. Maumoon AbdulGayoom; the Prime Minister of Nepal, Rt. Honble Mr. GirijaPrasad Koirala; the Prime Minister of the Islamic Republic ofPakistan, His Excellency Mr. Shaukat Aziz; and the Presidentof the Democratic Socialist Republic of Sri Lanka, HisExcellency Mr. Mahinda Rajapaksa, met at the FourteenthSummit meeting of the South Asian Association for RegionalCooperation (SAARC) held in New Delhi, India on April 3-4,2007.


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The Heads of State or Governmentwelcomed the entry of the IslamicRepublic of Afghanistan into SAARC.This was a historic moment asAfghanistan assumed its rightful placeas a valued member of the SAARC

fraternity


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The SAARC Secretariat

The SAARC Secretariat was established in Kathmanduon 16 January 1987. Its role is to coordinate andmonitor the implementation of SAARC activities,service the meetings of the Association and serve asthe channel of communication between SAARC andother international organisations. The Secretariat hasalso been increasingly utilised as the venue for SAARCmeetings.

The Secretariat comprises the Secretary General,seven Directors and the General Services Staff. The

details of its officials and working divisions responsiblefor areas of work can be viewed under respectivelinks.


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The SAARC Secretariat


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Established Centres

1.SAARC Agricultural Information Centre (SAIC),Dhaka

2.SAARC Meteorological Research Centre (SMRC),Dhaka

3.SAARC Tuberculosis Centre (STC), Kathmandu 4.SAARC Documentation Centre (SDC), New Delhi

5.SAARC Human Resources Development Centre(SHRDC), Islamabad

6.SAARC Coastal Zone Management Centre, Maldives

7.SAARC Information Centre, Nepal 8.SAARC Energy Centre, Pakistan

9.SAARC Disaster Management Centre, India


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SAARC

BORN IN 1985

7 MEMBERS COUNTRIES :BANGLADESH, BHUTAN,INDIA,MALDIVES,NEPAL,PAKISTAN AND SRI LANKA

IT HAS 1.3 BILLION INHABITANTS

REPRESENTS 22% OF THE WORLD POPULATION BUTONLY 1.9% OF THE WORLD GNP.

SAARC HAS BEEN A SHEER FAILURE.

THE TOTAL EXTERNAL TRADE OF THE REGION 0.8%OF WORLD EXPORTS AND 1.3% OF WORLD IMPORTS

THE REASON BEING POLITICAL DISPUTE BETWEENMEMBER COUNTRIES


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SAARC CONTD.

STILL SOME PROGRESS HAS BEENACHIEVED

SAPTA (SOUTH ASIANPREFERENTIALTRADING AGREEMENT)HAS COME INTO FORCE IN 1995

CONSENSUS ON SAFTA(SOUTH ASIAN

FREE TRADE AREA)HAS BEENREACHED


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North American FreeTrade Agreement

The North American Free Trade Area isthe trade bloc in North America created bythe North American Free Trade Agreement(NAFTA) and its two supplements, theNorth American Agreement onEnvironmental Cooperation (NAAEC) andthe The North American Agreement onLabor Cooperation (NAALC), whose

members are Canada, Mexico and theUnited States. It came into effect on 1January1994.
http://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/January_1http://en.wikipedia.org/wiki/January_1http://en.wikipedia.org/wiki/1994http://en.wikipedia.org/wiki/1994http://en.wikipedia.org/wiki/January_1http://en.wikipedia.org/wiki/January_1http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Trade_bloc


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NAFTA Initialing Ceremony, October 1992. From left to right: (Standing)Mexican President Salinas, US President Bush, Canadian Prime Minister

Mulroney (Seated) Jaime Serra Puche, Carla Hills, Michael Wilson.
http://en.wikipedia.org/wiki/Carlos_Salinashttp://en.wikipedia.org/wiki/George_H._W._Bushhttp://en.wikipedia.org/wiki/Brian_Mulroneyhttp://en.wikipedia.org/wiki/Jaime_Serra_Puchehttp://en.wikipedia.org/wiki/Carla_Hillshttp://en.wikipedia.org/wiki/Michael_Wilson_%28politician%29http://en.wikipedia.org/wiki/Michael_Wilson_%28politician%29http://en.wikipedia.org/wiki/Carla_Hillshttp://en.wikipedia.org/wiki/Jaime_Serra_Puchehttp://en.wikipedia.org/wiki/Brian_Mulroneyhttp://en.wikipedia.org/wiki/George_H._W._Bushhttp://en.wikipedia.org/wiki/Carlos_Salinas


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History of the implementation

The agreement was initially pursued by conservativegovernments in the United States and Canadasupportive of free trade, led by Canadian PrimeMinister Brian Mulroney, U.S. President George H. W.Bush, and the Mexican President Carlos Salinas deGortari.

The three-nation NAFTA was signed on 17 December1992, pending its ratification by the legislatures of thethree countries.

There was considerable opposition in all threecountries, but in the United States it was able tosecure passage after Bill Clinton made its passage amajor legislative initiative in 1993.
http://en.wikipedia.org/wiki/Conservatismhttp://en.wikipedia.org/wiki/Brian_Mulroneyhttp://en.wikipedia.org/wiki/George_H._W._Bushhttp://en.wikipedia.org/wiki/George_H._W._Bushhttp://en.wikipedia.org/wiki/Carlos_Salinas_de_Gortarihttp://en.wikipedia.org/wiki/Carlos_Salinas_de_Gortarihttp://en.wikipedia.org/wiki/Bill_Clintonhttp://en.wikipedia.org/wiki/Bill_Clintonhttp://en.wikipedia.org/wiki/Carlos_Salinas_de_Gortarihttp://en.wikipedia.org/wiki/Carlos_Salinas_de_Gortarihttp://en.wikipedia.org/wiki/George_H._W._Bushhttp://en.wikipedia.org/wiki/George_H._W._Bushhttp://en.wikipedia.org/wiki/Brian_Mulroneyhttp://en.wikipedia.org/wiki/Conservatism


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The NAFTA Secretariat

The NAFTA Secretariat, comprised ofa Canadian Section, a MexicanSection and a United States Section,is responsible for the administrationof the dispute settlement provisionsof the North American Free Trade

Agreement (NAFTA).


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Objectives(Article 102)

The objectives of this Agreement, as elaboratedmore specifically through its principles andrules, including national treatment, most-favored-nation treatment and transparency, are

to: a) eliminate barriers to trade in, and facilitate the

cross-border movement of, goods and servicesbetween the territories of the Parties;

b) promote conditions of fair competition in the freetrade area;

c) increase substantially investment opportunities inthe territories of the Parties;

d) provide adequate and effective protection andenforcement of intellectual property rights in eachParty's territory;


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e) create effective procedures for theimplementation and application of thisAgreement, for its joint administration and forthe resolution of disputes; and

f) establish a framework for further trilateral,regional and multilateral cooperation to expandand enhance the benefits of this Agreement.

2. The Parties shall interpret and apply theprovisions of this Agreement in the light of

its objectives set out in paragraph 1 and inaccordance with applicable rules ofinternational law.


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Relation to Other AgreementsArticle 103

The Parties affirm their existing rights andobligations with respect to each otherunder the General Agreement on Tariffs

and Trade and other agreements to whichsuch Parties are party.

In the event of any inconsistency betweenthis Agreement and such other

agreements, this Agreement shall prevail tothe extent of the inconsistency, except asotherwise provided in this Agreement.


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NAFTA

BORN IN JANUARY 1994.

MEMBER NATIONS:US,CANADA ANDMEXICO.

its the WORLD LARGEST FREE TRADEAREA.

UNDER NAFTA, ALL NON TARIFF BARRIERSTO AGRICULTURE WERE ELIMINATED.

MANY TARRIFFS ARE BEING ELIMINATEDOVER A PEROID OF 5-15 YRS.


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NAFTA

TWO WAY TRADE BETWEEN US & MEXICOHAS INCREASED BY MORE THAN55%.($11.6 BILLION).

TWO WAY TRADE BETWEEN US &CANADAINCREASED MORE THAN 50%(16.3BILLION.)

HUGE BENEFITS HAVE ACCRUED TO THE

NAFTA MEMBER COUNTRIES. NAFTA HAS BEEN A ROARING SUCCESSS.


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EU

IT IS A FAMILY OF DEMOCRATRICEUROPEAN COUNTRIES.

COMMITED TO WORKING TOGETHER FOR

PEACE AND PROSPERITY. ITS HISTORICAL ROOTSLIE IN THE

SECOND WORLD WAR.

IDEA OF EUROPEAN INTEGRATION WAS

CONCEIVED TO PREVENT SUCH KILLINGAND DESTRUCTION FROM EVERHAPPENING AGAIN.


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Member states of the EU:

Austria, Belgium, Bulgaria, Cyprus,Czech Republic, Denmark, Estonia,

Finland, France, Germany, Greece,Hungary, Ireland, Italy, Latvia,Lithuania, Luxembourg, Malta,Netherlands, Poland, Portugal, Romania,

Slovakia, Slovenia, Spain, Sweden,United Kingdom
http://europa.eu/abc/european_countries/eu_members/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/austria/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/belgium/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/bulgaria/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/cyprus/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/czechrepublic/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/denmark/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/estonia/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/finland/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/france/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/germany/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/greece/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/hungary/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/ireland/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/italy/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/latvia/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/lithuania/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/luxembourg/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/malta/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/netherlands/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/poland/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/portugal/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/romania/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/slovakia/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/slovenia/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/spain/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/sweden/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/unitedkingdom/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/unitedkingdom/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/sweden/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/spain/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/slovenia/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/slovakia/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/romania/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/portugal/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/poland/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/netherlands/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/malta/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/luxembourg/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/lithuania/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/latvia/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/italy/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/ireland/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/hungary/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/greece/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/germany/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/france/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/finland/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/estonia/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/denmark/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/czechrepublic/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/cyprus/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/bulgaria/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/belgium/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/austria/index_en.htmhttp://europa.eu/abc/european_countries/eu_members/index_en.htm


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The Euro: Our Currency

The euro is the currency of 13 EuropeanUnion countries: Belgium, Germany,Greece, Spain, France, Ireland, Italy,

Luxembourg, the Netherlands, Austria,Portugal, Slovenia and Finland.

Euro banknotes and coins have been incirculation since 1 January 2002 and are

now a part of daily life for 315 millionEuropeans living in the euro area


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The Eurosystem, which consist ofthe European Central Bank (ECB)and the national central banks of

the 13 countries belonging to theeuro area, has the exclusive right toissue euro banknotes. All decisions on

the designs, the denominations, etc.of the euro banknotes are taken bythe ECB.


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The conduct of monetary policy

The Eurosystem is in charge of definingand implementing the monetary policy ofthe euro area. Its primary objective in thisrespect is to maintain price stability in theeuro area. It furthermore conducts foreign-exchange operations (consistent with theexchange-rate policy defined by theCouncil), holds and manages the official

foreign reserves of the euro-area MemberStates and promotes the smooth operationof payment systems

Origins of the euro: Early days of the European


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Origins of the euro: Early days of the European

Union

19 September 1950: EuropeanPayments Union (EPU)

18 April 1951: European Coal andSteel Community established

25 March 1957: Treaty of Rome

29 December 1958: EuropeanMonetary Agreement


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THE RULE OF LAW IS FUNDAMENTAL TO THEEUROPERAN UNION.ALL EU DECISIONS ARE BASEDON TREATIES.,WHICH ARE AGREED BY ALL EUCONTRIES.

EU CONSISTED OF JUST 6 COUNTRIES:BELGIUM,GERMANY,FRANCE,ITALY,LUXEMBOURG &NETHERLANDS.

FURTHER ADDITIONS HAVE BEEN REAPEATEDLYTAKEN PLACE.

LAST INCREASE TOOK PLACE IN 2004,WITH 10 NEWCOUNTRIES JOINING IN.


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ACHIEVEMENTS

IT HAS ENSURE FREEDOM,SECURITY & JUSTICE.

JOB CREATION.

REGIONAL DEVELOPMENT & ENVIRONMENTALPROTECTION.

IT HAS HELPED RAISED LIVING STANDARDS,BUILT ASINGLE EUROPE WIDE MARKET.

LAUNCHED THE SINGLE EUROPEAN CURRENCY- THEEURO.

IT HAS STRENGTHNED EUROPES VOICE IN THE

WORLD.


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CASE STUDY

WHY ASEAN IS SUCCESSFUL AND SAARC HAS BEENUNSUCCESSFUL.

o ASEAN IS ONE OF THE MAJOR TRADING BLOCS INTHE WORLD

o IT REPRESENTS 420 MILLION PEOPLE.o It's a LARGER TRADE BLOCK THAN NORTH AMERICA

AND WESTERN EUROPE.

o SAARC REPRESENTS 22% OF HUMANITY.

o THERE IS A CONTRADICTION, AN IRONY BETWEEN

ASEAN & SAARC.o WHILE ASEAN HAS BEEN A ROARING SUCCESS &

CALLED ASIAN TIGERS ,SAARC HAS BEEN A SHEERFAILURE.


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REASONS

IN ASEAN ALL COUNTRIES ARE OF EQUALGEOGRAPHIC SIZE.

LEVEL OF ECONOMIC DEVELOPMENT IS THE SAME INALL COUNTRIES.

COMMON FEAR OF COMMUNIST CHINA ALL OF THEM HAD SIMILAR ECONOMIC

POLICIES.THEY ALL INTRODUCED ECONOMICLIBERALIZATION IN 1960s WHICH FURTHERACCLERATED ECONOMIC GROWTH.

WAY OF FUNCTIONING OF ASEAN BASED ON TWOPRINCIPLES:

1.MUSYAURARAH(CONSENSUS).

2.MUFAKAT(CONSULATATIONS).


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INDIAs TRADE WITH ASEAN IS MORE THAN 20 TIMESTHAN IN CASE OF SAARC.

IN SOUTH ASIA INDIA IS THE LARGEST COUNTRY.ITOCCUPIES MORE THAN 70% OF GEOGRAPHICAL AREA.

SO OTHER NATIONS FEEL THAT STRENGTHENING SAARC

MEANS EMPOWERING INDIA. SERIOUS BILATERAL DISPUTES BETWEEN TWO MAJORSOUTH ASIAN POWERS i.e INDIA & PAKISTAN.

BILATERAL DISPUTES AND DIFFERENCES BETWEEN OTHERMEMBER COUNTRIES.

INDIA,BANGLADESH DISPUTE.

INDIA ,NEPAL DISPUTE. NEPAL MYNMAR DISPUTE. PAKISTAN BANGLADESH DISPUTE.


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VAST DIFFERENCE IN ECONOMICDEVELOPMENT..

INDIA IS A DEVELOPED ECONOMY OF

SOUTH ASIA .OTHER CONTRIES ARELESS DEVELOPED.

PURCHASING POWER OF T HESECONTRIES IS VERY LOW.THEYCANNOT ACT EVEN AS A MARKET OFINDIAN GOODS.


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regional blocks in promotion of world trade - sumit sharma

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