A brief description about ITBs, their roles and functions and some examples.

1. INTERNATIONAL
TRADE BLOCS
BY- SHUBHAM
SHARMA

2. TOPICS UNDER RADAR..
• What are International Trading Blocs..
• Objectives of ITBs..
• Activities of ITBs..
• Drawbacks of Trading Blocks..
• Some major ITBs..
• What if there are no Trade Blocs..
• QA session..

3. What are ITBs..
• These are Inter –
Governmental associations to
promote business, trade and
exchange beyond national
boundaries..

4. Objectives of ITBs..
• Setting up a common market for trade.
• Continuous and balanced expansion.
• Empowering relations between member
states.
• Making trade laws and regulations
flexible.
• Economy Integration.
• Policy upgradations.
• Enhancing the life standards of people

5. Drawbacks of Trade
Blocs..
• Though we are not in any informal loss
of being in a Trade Bloc, but there are
many diplomatic and formal pressures
which put us in debt and we have to,
anyhow, fulfil, our promise of trade
treaties.
• For e.g.- If you’ve promise someone to
provide 100 kg of Soya bean in one year,
than you’ve to give him 100 kg of soya
bean, either you grow it or give it from

6. Activities of ITBs..
• Reduction in obstacles for movement of
persons, services & capital.
• Application of programs in order to co-
ordinate the economic policies.
• Reduction in custom duties, quantitative
restrictions with regard to exports &
imports.
• Establishments of common commercial
policies.

7. Some major ITBs…
• European Union (EU)
• Association of South East Asian Nations (ASEAN)
• African Union (AU)
• Union of South American Nations (UNASUR)
• Central American Integration System (SICA)
• Arab League (AL)
• European Free Trade Association (EFTA)
• Central European Free Trade Agreement (CEFTA)
• North American Free Trade Agreement (NAFTA)
• South Asian Association for Regional Cooperation
(SAARC)

8. Some major ITBs..

10. Details about some major
ITBs..
SAARC (South Asian Association for Regional
Co-operation)
HQ- Kathmandu, Nepal.
Members- INDIA, Nepal, Bhutan,
Afghanistan, Maldives, Pakistan, Sri-Lanka,
Bangladesh.

11. Details about some major
ITBs..
BRICS Co-operation.
HQ- NOT ANY.
Members- Brazil, Russia, INDIA, China,
South-Africa.

12. Details about some major
ITBs..
ASEAN (Association of Southeast
Asian Nations)
Established on August 8, 1967, in
Bangkok/Thailand.
Member States: Brunei Darussalam,
Cambodia, Indonesia, Laos, Malaysia,
Myanmar, Philippines, Singapore, Thailand,

13. Details about some major
ITBs..
European Union (EU)
Founded in 1951 by six neighbouring states as the
European Coal and Steel Community (ECSC). Over
time evolved into the European Economic Community,
then the European Community and, in 1992, was finally
transformed into the European Union.
HQ- Brussels, Belgium.
Regional bloc with the largest number of members
states (28). These include Austria, Belgium, Bulgaria,
Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Ireland,

14. Details about some major
ITBs..
NAFTA (North Atlantic Free Trade Agreement)
It is an agreement signed by Canada, Mexico, and
the United States, creating a trilateral rules-
based trade bloc in North America. The
agreement came into force on January 1,
1994. It superseded the Canada–United States
Free Trade Agreement between the U.S. and
Canada.

15. Trade analysis of India-
SAARC

16. Details about some major
ITBs..

17. What if there are no
TBs..
• Things and living standard would be
changed and will become expensive.
There are some limitations in trading
world wide like customs, stamps, other
taxes which bounds the world trade and
traders. Trade blocs help the traders to
freely perform transactions and do
business with some relaxations. No trade
blocs… No easiness……
• IT’S SIMPLE…

18. QnA Session..