REGIONAL ECONOMIC BLOCS FREE
“Pursuing stronger regional trade agreements can help form the building blocks for global free trade deals,” Foxley writes. The region should now expand its trade bloc to include China, Japan, and South Korea. East Asia: Despite a high number of trade agreements that make it difficult to resolve disputes and navigate the relevant rules, East Asia enjoys a successful trading history.Therefore, the case for regional blocs that eliminate tariffs among countries in the.
Latin America: With their relatively strong fiscal positions, Latin American countries can expand on existing agreements by ending administrative restrictions and tariffs and coordinating investment in transportation, energy, and telecommunications. countries on the same continents even in the absence of trade blocs.Eastern Europe: The European Union-which bought 80 percent of Eastern Europe’s exported goods in 2008-can spur further regional growth by implementing policies that reduce deficits and regain lost competitiveness.And bottom-up approaches in which companies develop regional supply chains are more effective in improving regional integration than top-down approaches imposed by governments. 1.4 Types of Regional Trading Arrangements (Blocs) 7 ibid at note 5 8 Frankel A.J., Regional Trading Blocs in the World Economic System,1997,p. Using the findings from three vastly different experiences, Foxley says that regional trade agreements work best when participating countries have few political differences, coordinate their monetary and fiscal policies, and embrace globalization. In a report, Alejandro Foxley analyzes how three regions-Eastern Europe, Latin America, and East Asia-are increasing trade within their borders and building a broader free trade system. With global trade talks stalled and lower demand from major economies that were hit hard by the global economic crisis, regional trade agreements are emerging as a way for middle-income countries to increase trade, spur growth, and lower unemployment rates.
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