Global Trading Blocks Saarc -Impact of India on Saarc
Trading blocs
Type Defination Examples
|Prefential Trading Area |A preferential trade agreement is perhaps the | |
| |weakest form of economic integration. In a PTA |European Economic area |
| |countries would offer tariff reductions, though| |
| |perhaps not eliminations, to a set of partner |India and Afghanistan |
| |countries in some product categories. Higher | |
| |tariffs, perhaps non-discriminatory tariffs, |India and Mauritious |
| |would remain in all remaining product | |
| |categories. | |
|Free Trade Area |A free trade area occurs when a group of |South Asian Free Trade Agreement (SAFTA) |
| |countries agree to eliminate tariffs between | |
| |themselves, but maintain their own external |Africa Free Trade Zone(AFTZ) |
| |tariff on imports from the rest of the world | |
| | |Central Europe Free Trade Agreement (CEFT) |
| |
Type Defination Examples
|Prefential Trading Area |A preferential trade agreement is perhaps the | |
| |weakest form of economic integration. In a PTA |European Economic area |
| |countries would offer tariff reductions, though| |
| |perhaps not eliminations, to a set of partner |India and Afghanistan |
| |countries in some product categories. Higher | |
| |tariffs, perhaps non-discriminatory tariffs, |India and Mauritious |
| |would remain in all remaining product | |
| |categories. | |
|Free Trade Area |A free trade area occurs when a group of |South Asian Free Trade Agreement (SAFTA) |
| |countries agree to eliminate tariffs between | |
| |themselves, but maintain their own external |Africa Free Trade Zone(AFTZ) |
| |tariff on imports from the rest of the world | |
| | |Central Europe Free Trade Agreement (CEFT) |
| |
References: Barbara Ingham(2004) “ International Economics” Jaques Pelkmans(2006) “European Integration Methods and Economic Analysis” Second and Third edition