周贸易章麦格劳-2012 blocks chap12wtrade区块.pptx

Week11:TradeBlocs(Ch.12)McGraw-Hill/IrwinCopyright?2012byTheMcGraw-HillCompanies,Inc.Allrightsreserved.

1.Typesofeconomicblocs

Afree–tradearea:membersremovetradebarriersamongthemselvesbutkeeptheirseparatenationalbarriersagainstothersi.e.NAFTAAcustomsunion:membersremovetradebarriersamongthemselvesandadoptacommonsetofexternalbarriersEECfrom1957to1992MERCOSUR(Argentina,Brazil,ParaguayandUruguay)formedin1991

1.Typesofeconomicblocs

Acommonmarket:acustomsunionplusmembersallowfullfreedomoffactorflows(migrationoflabourandcapital)amongthemselvesAfulleconomicunion:acommonmarketplusmembercountriesunifyalltheireconomicpoliciesincludingmonetary,fiscalandwelfarepolicies.AustraliaaftertheFederationin1901.TheEUisonthepathtowardeconomicunity.

Figure12.1TypesofEconomicBlocs

2.PreferentialTradeAgreements(PTAs)SettingupafreetradeareawouldnormallyviolatetheWTOprinciples(i.e.MFN).However,ArticleXXIVofGATTallowsregionaltradearrangementsasaspecialexception.Thearticlecovers:Customsunions:barriersbetweenmembercountriesareremoved,withacommonexternaltariffFreeTradeAreas:barriersbetweenmembercountriesareremoved,buteachmemberhasitsownexternaltariffsagainstnon-members.

RegionalandbilateralPTAshaveproliferatedaftertheformationofNAFTA(1994)Therearenowover400PTAsthathavebeennotifiedtotheWTOLargeeconomiessuchastheUS,EU,Japan,ChinahavemademanyPTAsinrecentyears,butthereisnopreferentialtradeagreementbetweentheseeconomies

AustraliahasaFreeTradeAgreementswith:NewZealand(1983)Singapore(2003)Thailand(2005)UnitedStates(2005)Chile(2009)ASEAN-NewZealand(2009)

AustraliahasrecentlysignedFTAswith:JapanChinaAndSouthKorea

AustraliaisnegotiatingFTAswith:IndonesiaMalaysiaIndiaGulfstates(GulfCooperationCouncilismadeupofBahrain,Kuwait,Oman,