Final project on Trade Bloc.docx

8/12/2019 Final project on Trade Bloc.docx

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CHAPTER 1

International Business

International business is defined as activities that buys and sells goods

and services across two or more national boundaries, even if the management is

located in a one country. It includes any type of business activity that crosses

national borders. International business is related only with those big enterprises

which have operating units outside their own country. There are institutional

arrangements that provide some managerial direction of economic activity

taking place abroad.

International business has become massive in scale and has come to

exercise a major influence over political, economic and social development.

Sometimes, foreign operations and comparative business are used as

synonymous for international business. Foreign business refers to domestic

operations within a foreign country. Comparative business focuses onsimilarities and differences among countries and business systems for better

understanding and to develop a new perspective of home institutions and

enrichments. Similarly, foreign business operations and comparative business

do not have major point of interest and special problems when business

activities cross the national boundaries.

Economic development is an urgent need. Globalization which links

countries closer than ever before with each other reinforces this need.

International business can affect development by complementing domestic

investment abd by undertaking trade and transfer of knowledge, skill and

technology. Change in technology, demand and economic structure can make

the exchange of services an increasingly important form of trade in the 21st

Century. Reductions in communication time and costs, and use of common


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international standards for professional services have contributed to the large

jump in service trade in the mid-nineties.

GROWOING IMPORTANCE OF INTERNATIONAL BUSINESS

International Business involves the broadest and most generalized study

of the field of business, adopted to a fairly unique across the border

environment. Many environmental variables such as legal system, foreign

exchange markets, cultural differences, and inflation are very important in the

international business is really not like playing a whole new ball game but it is

like playing in a different ball park , where the managers have to learn thefactors unique to the playing field. The guiding principles of a firm engaged in

international business activities should incorporate a global perspective.

Incorporating an international outlook into the firms basic statement will help

focus the attention of management on the opportunities outside the domestic

economy. The following are the reasons for growing importance of international

business:

1) Current trends are towards the increasing globalization andinterdependence of firms, markets and countries.

2) Intense competition among countries, industries and firms on aglobal level is a recent development.

3) Largely due to exchange rate developments both exports andimport dollar values have shifted from negative growth rates to a

positive growth rates in 1998.

4) Global capital flows have become a major factor in shaping theworld economy and international trade in the 1990s. There was an

unprecedented rise in global foreign direct investment flows

between 1992 and 1998 and also a surge in global bank lending.


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5) Largely due to exchange rate developments both export andimport dollar values have shifted from negative growth rates to a

positive growth rates in 1998.

6) Differences in prices are the basic cause of trade and reflectinternational differences in costs.

7) The increased importance of social responsibility corresponds tothe growing scope of activities undertaken by the enterprises in the

globalizing world economy.

8) A major development is the expanding number, range, co-ordination and activism among parts of civil society.

9) The growing economic interdependence of the world communityto which the liberalization of international investment and trade

regimes has contributed significantly has great potential for

enhancing the living standards of the people throughout the world

10)Advance in information, communication and transportationtechnologies as well as in managerial and organizational methods,facilitate the transnalisation of many small and medium firms.

SCOPE OF INTERNATIONAL BUSINESS ACTIVITES

Global corporations consider the whole of the world as their

production place, as well as their market and move factors of production to

wherever they can optimally be combined. They avail fully of the revolution

that has brought about instant worldwide communication and instant

transformation. Their ownership is transactional and management is also

transnational. They have freely mobile managements, technology and capital.

They are domestic in every place, foreign in none and a true corporate citizen of

the world.


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International firms operate in environments that are highly

uncertain and where the rules of the game are often ambiguous, contradictory

and subject to rapid change, as compared to the domestic environment. There

must be constant reiteration as one move around the decision circle. The

sourcing strategy obviously influences marketing strategy as well as reverse.

The target market may enjoy certain preferential relationships with other

markets. In as much as the number of options a firm faces is multiplied as it

moves into international markets-decision-making becomes increasingly

complex, the deeper the firm involves internationally. They are dealing with

multiple currency, legal, marketing, economic, political and cultural system.

Geographic and demographic factors also differ widely

More and more firms are investing abroad through expansion of

existing facilities or Greenfield projects. The fragmentation of production

processes across international borders is an important new trend, particularly for

developing economies. Declining communication costs and improved

transportation systems permit just-in-time delivery and the co-ordination of

production across borders. Developing economies can expedite their integration

into the new production systems by liberalizing and improving their

telecommunications and transportation sectors. Global trade rule have fostered

global production networks and an associated rise in intra-firm trade, by

progressively lowering trade-barriers and reducing the likelihood of

unpredictable increase. Foreign capital has been playing a catalytic role in

pushing policies in the right direction and contributing a number of resources to

the development effort.


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INTRODUCTION ECONOMIC INTEGRATION

Some countries create business opportunities for themselves by

integrating their economies in order to avoid unnecessary competition among

the countries. Economic integration results in grouping up of smaller economic

consequences of politically independent countries and political boundaries.

Economic integration among the countries takes several forms. It covers

different kinds of arrangement among countries by which two or more countries

link their economies closer either in part or total. The different kinds of

economic integration are Free Trade Area, Customs Union, Common Market

and Economic Union. Economic Union is superior to common market. The

countries maintain trade relations with other countries thought tariffs. They

discriminate against the other countries; which are not parties to the agreement,

through tariffs. They also discriminate against the goods produced by other

countries.

The approach towards regional integration has been increasing

throughout the globe. The member countries of the group adopt a system of

preferential tariffs like lower rates of duty on imports. In a free trade area, the

member charges low rates of tariff or abolish them regarding the trade among

themselves and different countries, charge different rates to non-members.

European Free Trade Association is a good example of economic integration.

The economic integration of the countries of the same region or areas increases

the size of market, aggregate demand for product and services, quantity of

production employment and ultimately the economic activity of the region. The

people of the region get a variety of products at comparatively lower prices.


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ECONOMIC INTEGRATION

Economic integration is an economic alliance or network-based on co-

operation, collaboration, flexibility, adaption, risk and cost reduction, shared

interests and objectives, closeness and a commitment between two countries on

an integrating, ongoing based. Thus, economic integration means that it is

creation of network like-minded states together and design economic goals and

work together to attain these goals. It can be accomplished on a case to basis, or

it can be an ongoing collaboration over a period of time. For example, the

cooperation between Tornio in finland and Haparanda in Sweden. These two

border towns have decided economic activity in the region. Both the cities have

been benefits from the enhanced city provided services which each town would

no successful enough in their economic integration that are now talk about

integrating the entire region straddling the sea of bothnia. The successful

economic integration of this region can be used as a model for other areas both

in Scandinavia and throughout the world.

Economic integration is not an easy task. This is clearly evidence from its

nature and even more so a problem in the Baltic region where there have been

so many political changes in recent years. We have seen the formation of three

newly independent states, Estonia, Latvia and Lithuania. East and West

Germany have been reunited to form a new nation. The communist Government

of the former social block has been replaced by democracy. These changes have

made economic integrated not only more difficult but also to some extend more

necessary. Europe as a whole is becoming an economically integrated union

mainly in the nations of the European Union, but in non-member nations as

well. Perhaps, the best example of this phenomenon of economic integration is

the introduction of a common European currency; the Euro. This, more than

anything signifies the changes and levels of increasing co-operation between

European Union nations. Another example could be the creation of a common


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tax base and the abolition of import-export fees and the creation of the common

European Market, where business effectively get to treat the entire European

Union as one state.

Economic integration has been a major issue in the new EU. There have

been long lasting effects on the Baltic Sea region. VASAB 2010 project has

investigated aviation development in Scandinavia and its feasibility as well as

the possibility of a Helsinki-Tallin link similar to the bridge-link opened in

ovcsund. It has touched the aspect effecting transportation issue with relation to

economics in the Baltic Sea region.

GOALS OF ECONOMIC INTEGRATION

The goals of economic integration are to create a network of likeminded

states that together design economic goals and work together design economic

goals and work together to attain these goals. Economic integration can be

accomplished on a case basis on can be ongoing collaboration between nations

to enhance economic condition over long period of time. Thus, the following

are the objectives of economic integration.

(1)To protect domestic industries or certain other sectors of the economy.(2)To guard against dumping.(3)To promote indigenous research and development.(4)To conserve the foreign exchange resource of the country.(5)To make the balance of payment position more favorable.


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FORMS OF ECONOMIC INTEGRATION:

The important forms of economic integration between countries are given

below.

(1)Preferential Trading Agreements: A preferential TradingAgreement is the simplest form of economic integration. A group of

countries have formal agreement to allow each others good to be

traded on preferential terms. The preferential treatment may be in the

form of reduced or special quota for the goods of the countries.

(2)Free trade Area (FTA):Free trade area is a permanent agreementbetween neighboring countries. There is a complete removal of traffic

on goods trades between the members of the free trade area. It

involves tariff free trade among the members countries. The members

are free to impose their own trade restrictions on imports from

countries outside Free Trade Area. As a result of this, the goods from

outside FTA may enter into the free trade area through the member

countries levying the lowest tariffs. To overcome this problem, the

members have to maintain customs points at their common borders to

make sure that imports do not enter into the free trade area through the

member levying the lowest tariff on each item. They should also agree

on rules of origin to establish while a good is made in a member

country and therefore, it is able pass duty free across their borders.

(3)Customs Unions: Customs Union is a free trade area plus anagreement to establish common barriers to trade with the rest world.

They have a common tariff against the outside world therefore; the

members need not have their customs control of goods moving among

themselves or rules of the origin. Agreement is needed on the level of

the common external tariff and on the administration of the tariff

revenues.


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(4)Common Markets: Common market is a customs union wheninternal non-tariff barriers have also been removed. It allows free

movement of goods services and capital among the member countries.

A common market implies that there is an internal market;

compromise all the member nations, which is common to all firms

trading within that market.

(5)Economic Union: Economic Union is the most complete form ofeconomic integration between countries. This involves common

market and also the harmonization of economic policies in particular

Monetary Union and the coordination of fiscal policies. Monetary

union may involves a fixed change rate system between the member

countries with a single or common currency and control over interest

rates and other instruments of monetary policy. Fiscal policy co-

ordination involves rationalization of tax rates and some degree of

control over government budgets and budget deficits. There is also

likely coordination of other economic policies such as agriculturalindustries and other policies. Thus economies closely so that in effect,

they function as a single economy.


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TRADE BLOC

A trade blocis a type ofintergovernmental agreement,often part of a regional

intergovernmental organization, where regional barriers to trade, (tariffs andnon-tariff barriers)are reduced or eliminated among the participating states.

Historic economic blocs include the Hanseatic League, a trading alliance in

northern Europe in existence between the 13th and 17th centuries and the

German Customs Union (Zollverein) initiated in 1834, formed on the basis of

theGerman Confederation and subsequentlyGerman Empire from 1871. Surges

of trade bloc formation were seen in the 1960s and 1970s, as well as in the

1990s after the collapse of Communism.By 1997, more than 50% of all world

commerce was conducted under regional trade blocs.

Economist Jeffrey J. Scott of the Peterson Institute for International Economics

notes that members of successful trade blocs usually share four common traits:

similar levels of per capita GNP, geographic proximity, similar or compatibletrading regimes, and political commitment to regional organization.

Advocates of worldwide free trade are generally opposed to trading blocs,

which, they argue, encourage regional as opposed to global free trade. Scholars

and economists continue to debate whether regional trade blocs are leading to a

more fragmented world economy or encouraging the extension of the existing

globalmultilateral trading system.

Trade blocs can be stand-alone agreements between several states (such as the

North American Free Trade Agreement (NAFTA) or part of a regional

organization (such as theEuropean Union). Depending on the level ofeconomic

integration, trade blocs can fall into different categories, such as: preferential

trading areas,free trade areas,customs unions,common markets andeconomic

and monetary unions.
http://en.wikipedia.org/wiki/Trade_pacthttp://en.wikipedia.org/wiki/Intergovernmental_organizationhttp://en.wikipedia.org/wiki/Barriers_to_tradehttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Non-tariff_barriers_to_tradehttp://en.wikipedia.org/wiki/Hanseatic_Leaguehttp://en.wikipedia.org/wiki/Zollvereinhttp://en.wikipedia.org/wiki/Zollvereinhttp://en.wikipedia.org/wiki/German_Confederationhttp://en.wikipedia.org/wiki/German_Empirehttp://en.wikipedia.org/wiki/Collapse_of_Communismhttp://en.wikipedia.org/wiki/Economisthttp://en.wikipedia.org/wiki/Peterson_Institute_for_International_Economicshttp://en.wikipedia.org/wiki/GNPhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Multilateralismhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Regional_organizationhttp://en.wikipedia.org/wiki/Regional_organizationhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Economic_integrationhttp://en.wikipedia.org/wiki/Economic_integrationhttp://en.wikipedia.org/wiki/Preferential_trading_areahttp://en.wikipedia.org/wiki/Preferential_trading_areahttp://en.wikipedia.org/wiki/Free_trade_areahttp://en.wikipedia.org/wiki/Customs_unionhttp://en.wikipedia.org/wiki/Common_markethttp://en.wikipedia.org/wiki/Economic_and_monetary_unionhttp://en.wikipedia.org/wiki/Economic_and_monetary_unionhttp://en.wikipedia.org/wiki/Economic_and_monetary_unionhttp://en.wikipedia.org/wiki/Economic_and_monetary_unionhttp://en.wikipedia.org/wiki/Common_markethttp://en.wikipedia.org/wiki/Customs_unionhttp://en.wikipedia.org/wiki/Free_trade_areahttp://en.wikipedia.org/wiki/Preferential_trading_areahttp://en.wikipedia.org/wiki/Preferential_trading_areahttp://en.wikipedia.org/wiki/Economic_integrationhttp://en.wikipedia.org/wiki/Economic_integrationhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Regional_organizationhttp://en.wikipedia.org/wiki/Regional_organizationhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Multilateralismhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/GNPhttp://en.wikipedia.org/wiki/Peterson_Institute_for_International_Economicshttp://en.wikipedia.org/wiki/Economisthttp://en.wikipedia.org/wiki/Collapse_of_Communismhttp://en.wikipedia.org/wiki/German_Empirehttp://en.wikipedia.org/wiki/German_Confederationhttp://en.wikipedia.org/wiki/Zollvereinhttp://en.wikipedia.org/wiki/Hanseatic_Leaguehttp://en.wikipedia.org/wiki/Non-tariff_barriers_to_tradehttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Barriers_to_tradehttp://en.wikipedia.org/wiki/Intergovernmental_organizationhttp://en.wikipedia.org/wiki/Trade_pact


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Definition

An agreement between states,regions, or countries,

toreducebarriers totradebetween the participating regions. The most wellknown trade bloc isNAFTA,between the United States, Canada, and Mexico.

Some opponents of trade blocs believe that suchagreements are detrimental

toglobalfree trade.

The main advantages for members of trading blocs

1) Free trade within the blocKnowing that they have free access to each other's markets, members are

encouraged to specialise. This means that, at the regional level, there is a wider

application of the principle of comparative advantage.

2) Market access and trade creationEasier access to each others markets means that trade between members is

likely to increase.Trade creation exists when free trade enables high cost

domestic producers to be replaced by lower cost, and more efficient imports.

Because low cost imports lead to lower priced imports, there is a 'consumption

effect', with increased demand resulting from lower prices.

See:Trade creation and trade diversion

3) Economies of scaleProducers can benefit from the application ofscale economies,which will lead

to lower costs and lower prices for consumers.

4) JobsJobs may be created as a consequence of increased trade between member

economies.
http://www.investorwords.com/4120/region.htmlhttp://www.investorwords.com/10842/reduce.htmlhttp://www.investorwords.com/8968/barrier.htmlhttp://www.investorwords.com/5014/trade.htmlhttp://www.investorwords.com/5670/NAFTA.htmlhttp://www.investorwords.com/19249/agreement.htmlhttp://www.investorwords.com/2178/global.htmlhttp://www.investorwords.com/2090/free_trade.htmlhttp://www.economicsonline.co.uk/Global_economics/Trade_creation.htmlhttp://www.economicsonline.co.uk/Global_economics/Trade_creation.htmlhttp://www.economicsonline.co.uk/Global_economics/Trade_creation.htmlhttp://www.economicsonline.co.uk/Business_economics/Economies_of_scale.htmlhttp://www.economicsonline.co.uk/Business_economics/Economies_of_scale.htmlhttp://www.economicsonline.co.uk/Global_economics/Trade_creation.htmlhttp://www.economicsonline.co.uk/Global_economics/Trade_creation.htmlhttp://www.investorwords.com/2090/free_trade.htmlhttp://www.investorwords.com/2178/global.htmlhttp://www.investorwords.com/19249/agreement.htmlhttp://www.investorwords.com/5670/NAFTA.htmlhttp://www.investorwords.com/5014/trade.htmlhttp://www.investorwords.com/8968/barrier.htmlhttp://www.investorwords.com/10842/reduce.htmlhttp://www.investorwords.com/4120/region.html


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5) ProtectionFirms inside the bloc are protected from cheaper imports from outside, such as

the protection of the EU shoe industry from cheap imports from China and

Vietnam.

The main disadvantages of trading blocs

1) Loss of benefitsThe benefits of free trade between countries in different blocs is lost.

2) Distortion of tradeTrading blocs are likely to distort world trade, and reduce the beneficial effects

of specialisation and the exploitation ofcomparative advantage.

Inefficiencies and trade diversion

Inefficient producers within the bloc can be protected from moreefficient ones

outside the bloc. For example, inefficient European farmers may be protected

from low-cost imports from developing countries.Trade diversionarises when

trade is diverted away from efficient producers who are based outside the

trading area.
http://ec.europa.eu/enterprise/sectors/footwear/index_en.htmhttp://www.economicsonline.co.uk/Business_economics/Efficiency.htmlhttp://www.economicsonline.co.uk/Global_economics/Trade_creation.htmlhttp://www.economicsonline.co.uk/Global_economics/Trade_creation.htmlhttp://www.economicsonline.co.uk/Global_economics/Trade_creation.htmlhttp://www.economicsonline.co.uk/Global_economics/Trade_creation.htmlhttp://www.economicsonline.co.uk/Business_economics/Efficiency.htmlhttp://ec.europa.eu/enterprise/sectors/footwear/index_en.htm


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NORTH AMERICAN FREE TRADE AGREEMENT(NAFTA)

The North American Free Trade Agreement (NAFTA; French: Accord de

libre-change nord-amricain,ALNA; Spanish: Tratado de Libre Comercio deAmrica del Norte, TLCAN) is an agreement signed byCanada,Mexico,and the

United States, Of the free trade unions NAFTA is the most limited. It is

restricted to eliminating tariffs, quotas and other trade impediments amongst the

three countries involved. It has no governing structure, although there are

boards set up to settle agreements. There is no common customs or tariff

agreement for imported goods and services. No monetary union is in the works

and there is no movement to making education or training of professions similar

as in the EU. Most importantly, there is no free movement of citizens allowed.

It is a very powerful trade bloc, nonetheless, because of the economic and

political power of the United States. It involves about the same number of

citizens as the EU, about 400 million, but it has a slightly higher total GNP,

about 9 trillion dollars. It should be noted that NAFTA is in the processof

becoming a free trade zone. It has not reached this goal entirely yet, as there are

a number of industries that still receive protection such as citrus, lumber, and

Mexican petroleum. For a look at the key provisions of NAFTA please look at

asite maintained by the U.S. Embassy in Mexicocreating a trilateraltrade bloc

in North America. The agreement came into force on January 1, 1994. It

superseded the CanadaUnited States Free Trade Agreementbetween the U.S.

and Canada.

In terms of combinedpurchasing power parityGDP of its members, as of 2007

the trade bloc is the largest in the world and second largest by nominal GDP

comparison.
http://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/United_Stateshttp://www.usembassy-mexico.gov/bfnafta.htmhttp://en.wikipedia.org/wiki/Trade_blochttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Canada%E2%80%93United_States_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Canada%E2%80%93United_States_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Canada%E2%80%93United_States_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Trade_bloc#Most_active_regional_blocshttp://en.wikipedia.org/wiki/Trade_bloc#Most_active_regional_blocshttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Purchasing_power_parityhttp://en.wikipedia.org/wiki/Canada%E2%80%93United_States_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Trade_blochttp://www.usembassy-mexico.gov/bfnafta.htmhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Canada


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NAFTA has two supplements: the North American Agreement on

Environmental Cooperation (NAAEC) and the North American Agreement on

Labor Cooperation (NAALC).

Following diplomatic negotiations dating back to 1986 among the three nations,

the leaders met inSan Antonio,Texas, on December 17, 1992, to sign NAFTA.

U.S. President George H. W. Bush, Canadian Prime Minister Brian Mulroney

and Mexican President Carlos Salinas, each responsible for spearheading and

promoting the agreement, ceremonially signed it. The signed agreement then

needed to be ratified by each nation's legislative or parliamentary branch.

The agreement's supporters included 132 Republicans and 102 Democrats.

NAFTA passed the Senate 61-38. Senate supporters were 34 Republicans and

27 Democrats. Clinton signed it into law on December 8, 1993; it went into

effect on January 1, 1994. Clinton, while signing the NAFTA bill, stated that

"NAFTA means jobs. American jobs, and good-paying American jobs. If I

didn't believe that, I wouldn't support this agreement."

Trade

The agreement opened the door for open trade, ending tariffs on various goods

and services, and implementing equality between Canada, USA, and Mexico.

NAFTA has allowed agricultural goods such as eggs, corn, and meats to be

tariff-free. This allowed corporations to trade freely and import and export

various goods on a North American scale.
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Trade balances

The US goods trade deficit with NAFTA was $94.6 billion in 2010, a 36.4%

increase ($25 billion) over 2009.

The US goods trade deficit with NAFTA accounted for 26.8% of the overall

U.S. goods trade deficit in 2010.

The US had a services trade surplus of $28.3 billion with NAFTA countries in

2009 (the latest data available).

I nvestment

The US foreign direct investment (FDI) in NAFTA Countries (stock) was

$327.5 billion in 2009 (latest data available), up 8.8% from 2008.

The US direct investment in NAFTA countries is in nonbank holding

companies, and in the manufacturing, finance/insurance, and mining sectors.

The foreign direct investment, of Canada and Mexico in the United States

(stock) was $237.2 billion in 2009 (the latest data available), up 16.5% from

2008.

Industry

Maquiladoras (Mexican factories that take in imported raw materials and

produce goods for export) have become the landmark of trade in Mexico. These

are plants that moved to this region from the United States, hence the debate

over the loss of American jobs. Hufbauer's (2005) book shows that income in

the maquiladora sector has increased 15.5% since the implementation of

NAFTA in 1994. Other sectors now benefit from the free trade agreement, and
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the share of exports from non-border states has increased in the last five years

while the share of exports from maquiladora-border states has decreased. This

has allowed for the rapid growth of non-border metropolitan areas, such as

Toluca, Len and Puebla; all three larger in population than Tijuana, Ciudad

Jurez,andReynosa.

Agriculture

From the earliest negotiation,agriculture was (and still remains) a controversial

topic within NAFTA, as it has been with almost all free trade agreements that

have been signed within the WTO framework. Agriculture is the only section

that was not negotiated trilaterally; instead, three separate agreements were

signed between each pair of parties. The CanadaU.S. agreement contains

significant restrictions and tariff quotas on agricultural products (mainly sugar,

dairy, and poultry products), whereas the MexicoU.S. pact allows for a wider

liberalization within a framework of phase-out periods (it was the first North

South FTA on agriculture to be signed).

NAFTA has increased U.S. agricultural exports to Mexico and Canada even

though most of this increase occurred a decade after its ratification. The study

focused on the effects that gradual "phase-in" periods in regional trade

agreements, including NAFTA, have on trade flows. Most of the increase in

members agricultural trade, which was only recently brought under the

purview of the World Trade Organization, was due to very high trade barriers

before NAFTA or other regional trade agreements.

Mobility of persons

According to the Department of Homeland Security Yearbook of Immigration

Statistics, during fiscal year 2006 (i.e., October 2005 through September 2006),

73,880 foreign professionals (64,633 Canadians and 9,247 Mexicans) were
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admitted into the United States for temporary employment under NAFTA (i.e.,

in the TN status). Additionally, 17,321 of their family members (13,136

Canadians, 2,904 Mexicans, as well as a number of third-country nationals

married to Canadians and Mexicans) entered the U.S. in the treaty national's

dependent (TD) status.[21]

Because DHS counts the number of the new I-94

arrival records filled at the border, and the TN-1 admission is valid for three

years, the number of non-immigrants in TN status present in the U.S. at the end

of the fiscal year is approximately equal to the number of admissions during the

year. (A discrepancy may be caused by some TN entrants leaving the country or

changing status before their three-year admission period has expired, while

other immigrants admitted earlier may change their status to TN or TD, or

extend TN status granted earlier).

EUROPEAN UNION

The European Union (EU) is an economic andpolitical union of 28 member

states that are locatedprimarily inEurope.The EU operates through a system of

supranational independent institutions and intergovernmental negotiated

decisions by the member states. Institutions of the EU include the European

Commission, the Council of the European Union, the European Council, the

Court of Justice of the European Union,theEuropean Central Bank,the Court
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of Auditors,and the European Parliament.The European Parliament is elected

every five years byEU citizens.The EU's de factocapital isBrussels.

The EU traces its origins from theEuropean Coal and Steel Community (ECSC)and the European Economic Community (EEC), formed by the Inner Six

countries in 1951 and 1958, respectively. In the intervening years the

community and its successors have grown in size by the accession of new

member states and in power by the addition of policy areas to its remit. The

Maastricht Treaty established the European Union under its current name in

1993. The latest major amendment to the constitutional basis of the EU, the

Treaty of Lisbon,came into force in 2009.

The EU has developed a single market through a standardised system of laws

that apply in all member states. Within theSchengen Area (which includes 22

EU and 4 non-EU states) passport controls have been abolished. EU policies

aim to ensure the free movement of people, goods, services, and capital,enact

legislation in justice and home affairs, and maintain common policies on trade,

agriculture,fisheries,andregional development.

The eurozone, a monetary union, was established in 1999 and came into full

force in 2002. It is currently composed of 17 member states. Through the

Common Foreign and Security Policy the EU has developed a role in external

relations and defence. Permanent diplomatic missions have been established

around the world. The EU is represented at the United Nations, theWTO, the

G8,and theG-20.

With a combined population of over 500 million inhabitants, or 7.3% of the

world population, the EU in 2012 generated a nominal gross domestic product

(GDP) of 16.584 trillion US dollars, constituting approximately 23% of global

nominal GDP and 20% when measured in terms of purchasing power parity,
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which is the largest nominal GDP and GDP PPP in the world. The EU was the

recipient of the2012 Nobel Peace Prize.

LEADERS

President of the Commission-Jos Manuel Barroso (EPP)

President of the European Council-Herman Van Rompuy (EPP)

ESTABLISHMENT

-Treaty of Paris 23 July 1952

- Treaty of Rome 1 January 1958

- Merger Treaty 1 July 1967

- Treaty of Maastricht 1 November 1993

- Lisbon Treaty 1 December 2009

MEMBER STATES

Austria Belgium Bulgaria Croatia Cyprus

Ireland Italy Latvia Lithuania Luxembourg
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Czech Republic Denmark Estonia Finland France Germany Greece Hungary United Kingdom

Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden

Governance

Main articles: Institutions of the European Union and Legislature of the

European Union

The European Union has seven institutions: the European Parliament, the

Council of the European Union, the European Commission, the European

Council,theEuropean Central Bank,theCourt of Justice of the European Union

and the European Court of Auditors. Competencies in scrutinising and

amending legislation are divided between the European Parliament and the

Council of the European Union while executive tasks are carried out by the

European Commission and in a limited capacity by the European Council (not

to be confused with the aforementioned Council of the European Union). The

monetary policy of the eurozone is governed by the European Central Bank.

The interpretation and the application of EU law and the treaties are ensured by

the Court of Justice of the European Union. The EU budget is scrutinised by the

European Court of Auditors. There are also a number of ancillary bodies which

advise the EU or operate in a specific area.
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SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION

The South Asian Association for Regional Cooperation (SAARC) is an

economic and geopolitical union of the eighth member nations that areprimarily located inSouth Asia contingent.

[9]Its secretariat is headquartered in

Kathmandu,Nepal.

The idea of regional political and economical cooperation in South Asia was

first coined in 1980 and the first summit held inDhaka on 8 December in 1985

led to its official establishment by the governments of Bangladesh, Bhutan,

India, Maldives,Nepal, Pakistan, and Sri Lanka. In the intervening years, its

successors have grown in size by the accession of new member states.

Afghanistan was the first to have been accessed in the physical enlargement of

the SAARC in 2007.

Current members

Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka

Observers

Australia[42] China European Union[43] Japan[43] Iran Mauritius[44] Myanmar South Korea United States[45]
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The SAARC policies aim to promotewelfare economics, collective self-reliance

among the countries of South Asia, and to accelerate socio-cultural

development in the region. The SAARC has developed a role in external

relations around with world. Permanent diplomatic relations have been

established with theEU,theUN (as anobserver), and other multilateral entities.

On annual scheduled basis, the official meetings of leaders of each nation are

held; meetings of foreign secretaries, twice annually. The next summit is

expected to be held inKathmandu in 2013, but the official dates for the summit

is yet to be determined.

Potential future members

China has expressed interest in upgrading its status from an observerto a full member of SAARC. Supported by Pakistan, Bangladesh, Nepal,

Maldives, Sri Lanka.

Burma has expressed interest in upgrading its status from an observerto a full member of SAARC.

Russia has expressed interest in becoming an observer of SAARC.Supported By India.

SAARC summits

No Date Country Host Host leader

1st78 December

1985Bangladesh Dhaka

Ataur Rahman

Khan

2nd1617

November 1986India Bangalore Rajiv Gandhi
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3rd24 November

1987Nepal Kathmandu

Marich Man Singh

Shrestha

14th 34 April 2007 India New Delhi Manmohan Singh

15th13 August

2008Sri Lanka Colombo

Mahinda

Rajapaksa

16th2829 April

2010Bhutan Thimphu Jigme Thinley

17th

1011

November

2011[48]

Maldives AdduMohammed

Nasheed

18th 2013 Nepal Kathmandu Khil Raj Regmi

Objectives Of SAARC

The objectives and the aims of the Association as defined in the Charter are:

to promote the welfare of the people of South Asia and to improve theirquality of life;

to accelerate economic growth, social progress and cultural developmentin the region and to provide all individuals the opportunity to live in

dignity and to realise their full potential ;
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to promote and strengthen selective self-reliance among the countries ofSouth Asia;

to contribute to mutual trust, understanding and appreciation of oneanother's problems;

to promote active collaboration and mutual assistance in the economic,social, cultural, technical and scientific fields;

to strengthen co-operation with other developing countries; to strengthen co-operation among themselves in international forums on

matters of common interest; and

to co-operate with international and regional organisations with similaraims and purposes.

to maintain peace in the region

ASIA-PACIFIC ECONOMIC COOPERATION

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim

member economiesthat seeks to promotefree trade and economic cooperation

throughout theAsia-Pacific region. It was established in 1989 in response to the

growing interdependence of Asia-Pacific economies and the advent of regional

trade blocs in other parts of the world; to fears that highly industrialized Japan

(a member of G8) would come to dominate economic activity in the Asia-

Pacific region; and to establish new markets for agricultural products and raw

materials beyond Europe (where demand had been declining). APEC works to

raiseliving standards and education levels through sustainableeconomic growth

and to foster a sense of community and an appreciation of shared interests
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among Asia-Pacific countries. APEC includesnewly industrialized economies,

although the agenda of free trade was a sensitive issue for the developing NIEs

at the time APEC founded, and aims to enable ASEAN economies to explore

new export market opportunities for natural resources such as natural gas, as

well as to seek regional economic integration (industrial integration) by means

of foreign direct investment. Members account for approximately 40% of the

world's population, approximately 54% of the world's gross domestic product

and about 44% of world trade.[3]

For APEC Economic Trends Analysis in 2012,

see.

An annual APEC Economic Leaders' Meeting is attended by the heads of

government of all APEC members except the Republic of China (who is

represented by a ministerial-level official under the name Chinese Taipei as

economic leader). The location of the meeting rotates annually among the

member economies, and until 2011, a famous tradition involved the attending

leaders dressing in anational costume of the host member.

Member economies

APEC currently has 21 members, including most countries with a coastline on

thePacific Ocean.However, the criterion for membership is that the member is

a separate economy, rather than a state. As a result, APEC uses the term member

economiesrather than member countries to refer to its members. One result of

this criterion is that membership of the forum includes Taiwan (officially theRepublic of China, participating under the name "Chinese Taipei") alongside

People's Republic of China (see Cross-Strait relations), as well asHong Kong,

which entered APEC as a British colony but it is now aSpecial Administrative

Region of the People's Republic of China. APEC also includes three official

observers: ASEAN, the Pacific Islands Forum and the Pacific Economic

Cooperation Council.
http://en.wikipedia.org/wiki/Newly_industrialized_economyhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/ASEANhttp://en.wikipedia.org/wiki/Natural_resourceshttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Economic_integrationhttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Gross_domestic_producthttp://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/Asia-Pacific_Economic_Cooperation.htm%23cite_note-3http://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/Asia-Pacific_Economic_Cooperation.htm%23cite_note-3http://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/Asia-Pacific_Economic_Cooperation.htm%23cite_note-3http://en.wikipedia.org/wiki/Heads_of_governmenthttp://en.wikipedia.org/wiki/Heads_of_governmenthttp://en.wikipedia.org/wiki/Republic_of_Chinahttp://en.wikipedia.org/wiki/List_of_Chinese_Taipei_Representatives_to_APEChttp://en.wikipedia.org/wiki/Chinese_Taipeihttp://en.wikipedia.org/wiki/National_costumehttp://en.wikipedia.org/wiki/Pacific_Oceanhttp://en.wikipedia.org/wiki/Taiwanhttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Cross-Strait_relationshttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Special_Administrative_Region_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Special_Administrative_Region_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/ASEANhttp://en.wikipedia.org/wiki/Pacific_Islands_Forumhttp://en.wikipedia.org/wiki/Pacific_Economic_Cooperation_Councilhttp://en.wikipedia.org/wiki/Pacific_Economic_Cooperation_Councilhttp://en.wikipedia.org/wiki/Pacific_Economic_Cooperation_Councilhttp://en.wikipedia.org/wiki/Pacific_Economic_Cooperation_Councilhttp://en.wikipedia.org/wiki/Pacific_Islands_Forumhttp://en.wikipedia.org/wiki/ASEANhttp://en.wikipedia.org/wiki/Special_Administrative_Region_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Special_Administrative_Region_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Cross-Strait_relationshttp://en.wikipedia.org/wiki/People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Taiwanhttp://en.wikipedia.org/wiki/Pacific_Oceanhttp://en.wikipedia.org/wiki/National_costumehttp://en.wikipedia.org/wiki/Chinese_Taipeihttp://en.wikipedia.org/wiki/List_of_Chinese_Taipei_Representatives_to_APEChttp://en.wikipedia.org/wiki/Republic_of_Chinahttp://en.wikipedia.org/wiki/Heads_of_governmenthttp://en.wikipedia.org/wiki/Heads_of_governmenthttp://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/Asia-Pacific_Economic_Cooperation.htm%23cite_note-3http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Economic_integrationhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Natural_resourceshttp://en.wikipedia.org/wiki/ASEANhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Newly_industrialized_economy


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APEC's Three Pillars

To meet the Bogor Goals, APEC carries out work in three main areas:

1. Trade and Investment Liberalisation

2. Business Facilitation

3. Economic and Technical Cooperation

APEC and Trade Liberalisation

According to the organization itself, when APEC was established in 1989

average trade barriers in the region stood at 16.9 percent, but had been reduced

to 5.5% in 2004.

APEC's Business Facilitation Efforts

APEC has long been at the forefront of reform efforts in the area of business

facilitation. Between 2002 and 2006 the costs of business transactions across the

region was reduced by 6%, thanks to the APEC Trade Facilitation Action Plan

(TFAPI). Between 2007 and 2010, APEC hopes to achieve an additional 5%

reduction in business transaction costs. To this end, a new Trade Facilitation

Action Plan has been endorsed. According to a 2008 research brief published by

the World Bank as part of its Trade Costs and Facilitation Project,increasing

transparency in the region's trading system is critical if APEC is to meet its

Bogor Goal targets. The APEC Business Travel Card, a travel document for

visa-free business travel within the region is one of the concrete measures to

facilitate business. In May 2010 Russia joined the scheme, thus completing the

circle.
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Proposed Free Trade Area of the Asia-Pacific

APEC first formally started discussing the concept of a Free Trade Area of the

Asia-Pacific at its summit in 2006 in Hanoi. However, the proposal for such anarea has been around since at least 1966 and Japanese economist Kiyoshi

Kojima (ja)'s proposal for a Pacific Free Trade agreement proposal. While it

gained little traction, the idea led to the formation of Pacific Trade and

Development Conference and then the Pacific Economic Cooperation Council

in 1980 and then APEC in 1989.

In more recent times, economist C. Fred Bergsten has been the foremost

advocate of a Free Trade Agreement of Asia-Pacific. His ideas convinced the

APEC Business Advisory Council to support this concept.

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

The United Nations Conference on Trade and Development (UNCTAD)

was established in 1964 as a permanent intergovernmental body. It is the

principal organ of the United Nations General Assembly dealing with trade,

investment, and development issues.

The organization's goals are to "maximize the trade, investment and

development opportunities of developing countries and assist them in their

efforts to integrate into the world economy on an equitable basis." The creation

of the conference was based on concerns of developing countries over the

international market, multi-national corporations, and great disparity between

developed nations and developing nations.
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In the 1970s and 1980s, UNCTAD was closely associated with the idea of a

New International Economic Order (NIEO).

The United Nations Conference on Trade and Development was established in1964 to provide a forum where the developing countries could discuss the

problems relating to their economic development. UNCTAD grew from the

view that existing institutions like GATT (now replaced by the World Trade

Organization,WTO), theInternational Monetary Fund (IMF), andWorld Bank

were not properly organized to handle the particular problems of developing

countries.

The primary objective of the UNCTAD is to formulate policies relating to all

aspects of development including trade, aid, transport, finance and technology.

The conference ordinarily meets once in four years. The first conference took

place in Geneva in 1964, second inNew Delhi in 1968, the third in Santiago in

1972, fourth in Nairobi in 1976, the fifth in Manila in 1979, the sixth in

Belgrade in 1983, the seventh in Geneva in 1987, the eighth in Cartagena in

1992 and the ninth at Johannesburg (South Africa) in 1996. The permanent

secretariat is in Geneva.

One of the principal achievements of UNCTAD has been to conceive and

implement the Generalised System of Preferences (GSP). It was argued in

UNCTAD that to promote exports of manufactured goods from developing

countries, it would be necessary to offer special tariff concessions to such

exports. Accepting this argument, the developed countries formulated the GSP

scheme under which manufacturers' exports and some agricultural goods from

the developing countries enter duty-free or at reduced rates in the developed

countries. Since imports of such items from other developed countries are

subject to the normal rates of duties, imports of the same items from developing

countries would enjoy a competitive advantage.
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Currently, UNCTAD has 194 member states and is headquartered in Geneva,

Switzerland. UNCTAD has 400 staff members and an bi-annual (20102011)

regular budget of $138 million in core expenditures and $72 million in extra-

budgetary technical assistance funds. It is a member of the United Nations

Development Group.There are non-governmental organizations participating in

the activities of UNCTAD.

MEMBERS

As of October 2012, 194 states are UNCTAD members:[4]

allUN members and

theHoly See.UNCTAD members are divided into four lists, the division being

based on United Nations Regional Groups[4]

with six members unassigned:

Armenia, Kiribati, Nauru, South Sudan, Tajikistan, Tuvalu. List A consists

mostly of countries in the African andAsia-Pacific Groups of the UN. List B

consists of countries of theWestern European and Others Group.List C consists

of countries of the Group of Latin American and Caribbean States (GRULAC).

List D consists of countries of theEastern European Group.

The lists, originally defined in 19th General Assembly resolution 1995 serve to

balance geographical distribution of member states' representation on the Trade

Development Board and other UNCTAD structures. The lists are similar to

those ofUNIDO,an UNspecialized agency.

Meetings

The inter-governmental work is done at five levels of meetings:

The UNCTAD Conferenceheld every four years:o UNCTAD VIII inCartagena,Colombia on 825 February 1992o UNCTAD IX inMidrand,South Africa on 27 April11 May 1996o UNCTAD X inBangkok,Thailand on 1219 February 2000[6]
http://en.wikipedia.org/wiki/Genevahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/United_Nations_Development_Grouphttp://en.wikipedia.org/wiki/United_Nations_Development_Grouphttp://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/United_Nations_Conference_on_Trade_and_Development.htm%23cite_note-UNCTAD_Members-4http://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/United_Nations_Conference_on_Trade_and_Development.htm%23cite_note-UNCTAD_Members-4http://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/United_Nations_Conference_on_Trade_and_Development.htm%23cite_note-UNCTAD_Members-4http://en.wikipedia.org/wiki/Member_states_of_the_United_Nationshttp://en.wikipedia.org/wiki/Holy_Seehttp://en.wikipedia.org/wiki/United_Nations_Regional_Groupshttp://en.wikipedia.org/wiki/United_Nations_Regional_Groupshttp://en.wikipedia.org/wiki/United_Nations_Regional_Groupshttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Pacific_Oceanhttp://en.wikipedia.org/wiki/Western_European_and_Others_Grouphttp://en.wikipedia.org/wiki/Eastern_European_Grouphttp://daccess-ods.un.org/access.nsf/Get?OpenAgent&DS=A/RES/1995%28XIX%29&Lang=E&Area=RESOLUTIONhttp://en.wikipedia.org/wiki/United_Nations_Industrial_Development_Organization#Membershiphttp://en.wikipedia.org/wiki/Specialized_agencyhttp://en.wikipedia.org/wiki/Cartagena,_Colombiahttp://en.wikipedia.org/wiki/Colombiahttp://en.wikipedia.org/wiki/Midrand,_Gautenghttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Bangkokhttp://en.wikipedia.org/wiki/Thailandhttp://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/United_Nations_Conference_on_Trade_and_Development.htm%23cite_note-6http://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/United_Nations_Conference_on_Trade_and_Development.htm%23cite_note-6http://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/United_Nations_Conference_on_Trade_and_Development.htm%23cite_note-6http://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Bangkokhttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Midrand,_Gautenghttp://en.wikipedia.org/wiki/Colombiahttp://en.wikipedia.org/wiki/Cartagena,_Colombiahttp://en.wikipedia.org/wiki/Specialized_agencyhttp://en.wikipedia.org/wiki/United_Nations_Industrial_Development_Organization#Membershiphttp://daccess-ods.un.org/access.nsf/Get?OpenAgent&DS=A/RES/1995%28XIX%29&Lang=E&Area=RESOLUTIONhttp://en.wikipedia.org/wiki/Eastern_European_Grouphttp://en.wikipedia.org/wiki/Western_European_and_Others_Grouphttp://en.wikipedia.org/wiki/Pacific_Oceanhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/United_Nations_Regional_Groupshttp://en.wikipedia.org/wiki/United_Nations_Regional_Groupshttp://en.wikipedia.org/wiki/Holy_Seehttp://en.wikipedia.org/wiki/Member_states_of_the_United_Nationshttp://c/Users/RajeshNair/Pictures/TRADE%20BLOCK/United_Nations_Conference_on_Trade_and_Development.htm%23cite_note-UNCTAD_Members-4http://en.wikipedia.org/wiki/United_Nations_Development_Grouphttp://en.wikipedia.org/wiki/United_Nations_Development_Grouphttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Geneva


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o UNCTAD XI inSo Paulo,Brazil on 1318 June 2004[7]o UNCTAD XII inAccra,Ghana on 2125 April 2008[8]o UNCTAD XIII inDoha,Qatar on 2126 April 2012[9]

The UNCTAD Trade and Development Board the Board manages thework of UNCTAD between two conferences and meets up to three times

every year;

Four UNCTAD Commissions and one Working Party these meet moreoften than the Board to take up policy, programme and budgetary issues;

Expert Meetings the commissions will convene expert meetings onselected topics to provide substantive and expert input for Commission

policy discussions.

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

The United Nations Industrial Development Organization (UNIDO),

French/Spanish/Portuguese acronym ONUDI, is a specialized agency in the

United Nations system, headquartered in Vienna, Austria. The Organization's

primary objective is the promotion and acceleration of industrial development in

developing countries and countries with economies in transition and the

promotion of international industrial cooperation. It is also a member of the

United Nations Development Group.

Overview

UNIDO believes that competitive and environmentally sustainable industry has

a crucial role to play in accelerating economic growth, reducing poverty and

achieving the Millennium Development Goals. The Organization therefore
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works towards improving the quality of life of the world's poor by drawing on

its combined global resources and expertise in the following three interrelated

thematic areas:

Poverty reduction through productive activities; Trade capacity-building; and Energy and environment.

Activities in these fields are strictly aligned with the priorities of the current

United Nations Development Decade and related multilateral declarations, and

reflected in the long-term vision statement, business plan and mid-term

programme frameworks of UNIDO.

In order to fulfill these objectives, UNIDO

assists developing countries in the formulation of development,institutional, scientific and technological policies and programmes in the

field of industrial development;

analyzes trends, disseminates information and coordinates activities intheir industrial development;

acts as a forum for consultations and negotiations directed towards theindustrialization of developing countries; and

provides technical cooperation to developing countries for implementingtheir development plans for sustainable industrialization in their public,

cooperative and private sectors.

UNIDO thus works largely in developing countries, with governments, business

associations and individual companies. The Organization's "service modules"

are Industrial Governance and Statistics, Investment and Technology

Promotion, Industrial Competitiveness and Trade, Private sector Development,
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Agro-Industries, Sustainable energy and Climate Change, Montreal Protocol,

andEnvironmental management.

UNIDO was established as a UN programme in 1966 with headquarters inVienna, Austria, and became a specialized agency of the United Nations in

1985.

In 2004, UNIDO established theUNIDO Goodwill Ambassadorprogramme.

In 2010, UNIDO created two new flagship publications,Making It: Industry for

DevelopmentandUNIDO Times.

MEMBERS

Members of the UN, or of UNspecialized agencies,or of theIAEA,are eligible

for membership with UNIDO. The process of becoming a Member of the

Organization is achieved by becoming a party to the Constitution. Observer

status is open, upon request, to those enjoying such status in the GeneralAssembly of the United Nations, unless the UNIDO General Conference

decides otherwise. The Conference has the authority to invite other observers to

participate in the work of the Organization in accordance with the relevant rules

of procedure and the provisions of the Constitution.

As of 14 August 2013, 172 States are UNIDO Members, all of them being UN

members. UNIDO Members are divided into four lists, with Turkmenistan still

unassigned. List A consists of all UNIDO countries in the African + Asian

Groups of UN (along with Israel, while excluding Cyprus, Japan and

Turkmenista

Documents

Final project on Trade Bloc.docx