| REGIONAL TRADE BLOCKS | | | | It was established in Jan 1960, EFTA currently joins 4 |
| Companies need to adjust organizational structure | | | | countries – Norway, Iceland, Liechtenstein and |
| and operating strategy to take advantage of regional | | | | Switzerland. Members are Austria, Finland, and |
| trade groups. These are, | | | | Sweden joined on Jan 1, 1996. |
| 01. EU (European Union): | | | | 07. SAARC (The South Asian Association for Regional |
| The EU is become a most powerful trade block in | | | | Co-operation): |
| the world. It has members of Austria, Belgium, | | | | The SAARC involving seven countries, namely India, |
| Denmark, Finland, Germany, Greece, Ireland, Italy, | | | | Bangladesh, Pakistan, Nepal, Bhutan, Sri Lanka, and |
| Lather lands, Porchukcal, Spain, Sweden, and U.K. | | | | Maldives, was formally launched in Dec 1985. |
| 02. NAFTA (North American Free Trade Agreement): | | | | Objectives are: |
| 99% of the goods traded between Mexico, Canada, | | | | 1. To promote welfare of the people of South Asia. |
| and the U.S. It is a large trading block but includes | | | | 2. To accelerate economic growth. |
| countries of different sizes and wealth. | | | | 3. To strengthen co-operation with other developing |
| Additional provisions are: | | | | countries. |
| - Workers right | | | | 08. SAPTA (The SAARC Preferential Trading |
| - Dispute resolution mechanism | | | | Arrangement): |
| 03. LAFTA (Latin American Free Trade Association): | | | | The SAPTA has the members of India, Pakistan, |
| LAFTA and the Caribbean Free Trade Association | | | | Bangladesh, Nepal, Sri Lanka, Bhutan and Maldives. |
| (CARIFTA) changed their names to the Latin | | | | 1. Overall reciprocity and mutually of advantages. |
| American Integration Association and Caribbean | | | | 2. Step by step negotiations and extension of |
| community and common market (CARICOM). It has | | | | preferential trade arrangement in stages. |
| U.S as their major export market. | | | | 3. Inclusion of all types of products – Raw, |
| 04. ASEAN (Association of South East Asian Nations): | | | | Semi-processed, Processed. |
| It is organized in 1967and it has Cambodia, Indonesia, | | | | 4. Special and favorable treatment to Least |
| Malaysia, Myanmar, the Philippines, Singapore, Thailand | | | | Development Countries (LDCs). |
| and Vietnam. Jan 1, 1993 ASEAN officially formed the | | | | 09. Indo – Lanka Free Trade Agreement: |
| ASEAN Free Trade Area (AFTA). | | | | According to the Bilateral Free Trade Area |
| Its goal is to cut tariffs on all intra-zonal trade to a | | | | Agreement signed by India and Sri Lanka on 28th |
| maximum of 5%. | | | | Dec 1998, a large number of items will be eligible for |
| 05. APEC (Asia Pacific Economic Co-operation): | | | | duty free trade. |
| It was formed in NOV 1989 to promote multilateral | | | | It has offered to permit as much as 1000 items on |
| economic co-operation in trade and investment in the | | | | Zero duty from Sri Lanka and Sri Lanka will allow |
| Pacific Rim. It is composed of 21 countries that | | | | duty free imports of 900 items from India. |
| border the Pacific Rim – both Asia as well as the | | | | Its Objectives are. |
| America. | | | | 1. Expansion of trade the harmonious development of |
| It’s creating new opportunities for American | | | | the economic relations between India and Sri Lanka. |
| business and creating new employment for American | | | | 2. Removal of barriers to trade. |
| workers. | | | | 3. Expansion of world trade. |
| 06. EFTA (European Free Trade Association): | | | | |