What Is Regional Integration Agreement

Intraregional trade refers to trade that focuses on economic exchanges mainly between countries in the same region or economic zone. In recent years, for example, countries within economic and trade regimes such as ASEAN in Southeast Asia have increased the level of trade and commerce between goods, reducing inflation and tariff barriers associated with foreign markets, leading to increasing prosperity. Regional integration helps countries overcome divisions that impede the movement of goods, services, capital, people and ideas. These divisions constitute an obstacle to economic growth, particularly in developing countries. The World Bank Group helps client countries promote regional integration through common physical and institutional infrastructure. The number of agreements concluded under GATT and WTO rules and signed each year has increased considerably since the 1990s. There were 194 agreements ratified in 1999, and it contained 94 agreements from the early 1990s. [10] Wto agreements recognize that RTAs can benefit countries whose objective is to facilitate trade between their parties. They also recognize that, in certain circumstances, these agreements could harm the commercial interests of other countries.

Normally, the establishment of a customs union or free trade area would be contrary to the WTO principle of non-discrimination against all WTO Members (“most-favoured-nation treatment”). However, Article 24 of the General Agreement on Tariffs and Trade (GATT), Article 5 of the General Agreement on Trade in Services (GATS) and the enabling clause (paragraph 2(c)) allow WTO Members to conclude RTAs as a special exception provided that certain strict criteria are met. Regional economic integration has enabled countries to focus on issues relating to their level of development and to promote trade among neighbours. For example, U.S. companies sell more than $25 billion worth of products annually to regions in Latin America and the Caribbean, making it one of the U.S. top export markets. With the elimination of virtually all tariffs and other barriers to trade, the DCFTA-DR agreement further facilitates trade with these countries and opens up opportunities for a number of industries. At the same time, it enriches THE CAFTA-DR countries and increases the purchasing power of their citizens. In addition, the post-independence conflict in Africa has left much of the continent with a legacy of poor governance and a lack of political integration that seeks to solve the problems of free trade areas. Deep Integration Recognition analyzes the aspect that effective integration is a much broader aspect and surpasses the idea that reducing tariffs, quotas and barriers provides effective solutions.

Rather, it recognizes the concept that additional barriers tend to segment markets. This hinders the free movement of goods and services, as well as ideas and investments. It is therefore now recognized that the current traditional trade policy framework is not sufficient to remove these barriers. Such deep integration was implemented for the first time in the Programme for the Single Market in the European Union. However, in the light of the modern context, this debate is introduced into the clauses of various regional integration agreements resulting from the increase in international trade. [10] (EU). Political integration: As the economies of the cooperating countries are fully integrated into a single market, it seems necessary to establish common policies on social policy (education, health care, unemployment benefits and pensions) and common political institutions. This is political integration, and its culmination occurs when cooperating countries are so integrated that they share the same foreign policy and pool their armies. In fact, they form a new country. 4.

Foreign Affairs and International Trade Canada, “Fast Facts: North American Free Trade Agreement,” December 15, 2009, accessed December 30, 2009. December 2010, www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/fast_facts-faits_saillants.aspx?lang=eng. . . .