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Trade Blocs and their Significance in 2022

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Welcome to our blog ExBackbencher.com, and today we are going to discuss what are regional trade blocs, and we will see different types of regional trade blocs around the world and their significance in 2022.
But before we go into different types of regional trade blocs, first we know about what are trade blocs.

What are Trade blocs?

Suppose if countries of a particular region wants to take a decision regarding trading in international market than these regional trade blocs represent every country for a particular reason and clear their stance on a particular trade deal or any decision related to trade in international market.
In simple words, regional trade blocs are the trade organizations which take decision on behalf of its member countries.
And every member countries have to entered with many agreements with the other member countries of a regional trade bloc.

Also read-Air pollution, How it is impacting human lives in 2022

Different Trade Blocs and their significance in 2022

There are many trade blocs around the world, but we are going to discuss only regional trade blocs which make huge impact on international trade or on a particular industry.

1-European Union

European Union was set up in 1957 in Rome, and it consists only six country when it is started which includes France, Netherlands, Luxembourg, Belgium, Germany, Democratic republic and Italy.
The main objective of European Union was to remove trade restrictions among the member countries
there are 24 member countries in the European Union after Britain’s exit, which is called Brexit because it contains both the words Britain and exit in Brexit.

In 2021 the members of European Union includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal, Spain, Sweden and in 2004, 10 other nations have joined it, and they are Cyprus, Czech Republic, Hungary, Latvia, Lithuania, Malta, Öland, Slovenia and Slovakia and in 2007 Romania and Bulgaria were also become part of European Union.

According to the website of European Union, the main objective of European Union are organization of economy coordination of social development and establish political unity among the member countries and world.
The member countries of European Union share the currency which is Euro and European Union is the largest trade bloc according to the population it affects which is 470 million people.

2-Organization of petroleum exporting countries

OPEC was formed in 1916 with 13 members which are Gabon, Algeria, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, but Gabon left OPEC in 1996
It is the largest group of countries which producers crude oil, and it plays a major role in the prices of oils around the world even in 2022.

3-European free trade association

EFTA was originally formed in the year 1960 with its 7 members UK, Austria, Norway, Sweden, Portugal Denmark and Switzerland its objective was to increase cooperation in the field of International trade between its member countries. Trade.
According to EFTA its main objective are to remove trade tax in trade among the member countries in present date there are only four members in this association these are Norway, Iceland, Switzerland and Liechtenstein.

4-North America free trade agreement

NAFTA originally formed in 1988 as a result of international Trade between Canada and the United States of America in North America Free Trade Agreements all the restriction on trade are removed between these two major countries in 1994 Mexico also joined North American free trade agreement.

5-Association of South East Asian nations

ASEAN group of countries started in 1967 with its primary members Thailand, Cambodia, Vietnam, Indonesia, Singapore, Malaysia and Philippines and in July 1997 Myanmar, Brunei and Laos became its members the main Aim of ASEAN formation is to remove restriction on international trade between its member countries.

6-South Asian Association for Regional Cooperation

It is an association of 7 South Asian countries which are India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka and Maldives its main objective is to promote trade between the countries in the region and it however not much progress has been made in the direction because due to relationship between India and Pakistan its strength has however gone up to 8 as Afghanistan has joined SAARC.

Conclusion

We hope that by reading our article you will get an insight of what are regional trade blocs and what are their main objective in international trades examples of trade organization.

Thanks for Reading

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