Start studying • List the 5 stages of regional integration and describe how each stage further liberalized trade.. Free Trade Area – A trading bloc that eliminates tariffs and quotas among members but each member keeps its own third-party tariff structure. The third stage is underway in a number of RECs but not all. Free Trade Area –A trading bloc that eliminates tariffs and quotas among members b… Treaty Establishing the African Economic Community. When the externally arranged Bretton Woods exchange rate system broke down, it was replaced by European arrangements (the ‘snake’, and then the EMS). Preferential Trade Areas (PTAs) exist when countries within a geographical region agree to reduce or eliminate tariff barriers on selected goods imported from other members of the area. The scope of the CFTA agreement covers trade in goods, trade in services, investment, intellectual property rights and competition policy. There are four main types of regional economic integration. Usually integration involves one or more written agreements that describe the areas of cooperation in detail, as well as some coordinating bodies representing the countries involved. Economic Union (EU) – A trading bloc which is composed of a CM with a CU and also has common economic policies (monetary, fiscal and other), including a single currency. While a continental free trade area (CFTA) does not feature explicitly in the AU roadmap, in accordance with the sequential stages of regional economic integration, it is a stepping to stone to the creation of a continental CU. There are four main types of regional economic integration. Economic Development and Regional Integration Details Hits: 24507 OUR VISION: This involves the transformation of the Region into an area of shared growth and development, an area of cooperation based on convergence of strategies and policies. Since countries are free to negotiate regional economic agreements as they wish, in practice, formal agreements rarely fall neatly into one of these five stages. an ‘internal market’. ___customs union … Stages of economic integration around the World (each country colored according to the most integrated form that it participates with): Economic and monetary union (CSME / EC$, EU / €, Switzerland–Liechtenstein / CHF) Economic union (CSME, EU – UK, EAEU, MERCOSUR, GCC, SICA) Customs and monetary union (CEMAC / XAF, UEMOA / XOF) Stages of integration. Regional trading blocs increasingly shape the pattern of world trade – a phenomenon often referred to as regionalism. University. Some common investment rules are typically covered under the free movement of capital required by a SM, whereas an EU would usually contain a fully-fledged common investment policy. document.getElementById('cloak34aff4120dcba444fff2452d29778f4f').innerHTML = ''; As fundamental to the multi-faceted process of globalization, regional integration has been a major development in the international relations of recent years. These are the Arab Maghreb Union (AMU/UMA), Economic Community of West African States (ECOWAS), East African Community (EAC), Intergovernmental Authority on Development (IGAD), Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), Economic Community of Central African States (ECCAS) and the Community of Sahel-Saharan States (CENSAD). This is done by reducing tariffs but not by abolishing them completely. In other words, the different forms of economic integration between countries, across continents or within a region are known as regional trading arrangements (RTAs). All except the West Indies Federation are acronyms or abbreviations. Types of Regional Integration • Regional integration is a continuum, with economic interconnectedness progressing from a low level of integration—the free trade area — through higher levels to the most advanced form of integration—the political union . The integration processes are complex, due to the controversies that arise among its members. An SM is also sometimes referred to as a Common Market (CM). Intellectual property and competition policy would typically only be required under a EU, the fifth and final stage of regional economic integration. The rest of the world is not discriminated 6. Regional integration is the process by which two or more nation-states agree to co-operate and work closely together to achieve peace, stability and wealth. Effective implementation of the BIAT initiative will be crucial to minimizing the challenges and maximizing the gains of tariff liberalization, and ensuring that all African firms and countries are able to take advantage of the CFTA. 1. As Laffan, O Donnell and Sm ith (2000) note, Balassa s view of a External Effects of Regional Integration. Inherent to the pursuit of the internal market was a need for intra-area exchange rate stability. var path = 'hr' + 'ef' + '='; Implementation of regional economic integration has been poor, and member states of the AU are in varying stages of implementing the six stages in the creation of the continental Customs Union. It was agreed that the Community shall be established gradually in six stages of variable duration not exceeding thirty-four years. The EAC has made the most progress across the board. Durham University. Levels of Economic Integration. The CFTA agreement will therefore include a sub-agreement on trade in services on the basis of progressive liberalization, consolidating and building on the RECs’ achievements. As such, Regional Integration Agreements has gained high importance. managed by. Not only are almost all the industrial nati… Since few African countries have the institutional capacities and expertise to utilize trade remedy instruments such as anti-dumping, safeguards and countervailing measures, the scope of the CFTA however also covers these areas. A group of countries committed to removing trade barriers, adopting a common currency, harmonizing tax rates, and pursuing a common external trade policy, economic and political integration whereby countries coordinate aspects of their economic and political systems. Regional Integration in Africa Trudi Hartzenberg Trade Law Centre for Southern Africa (tralac) Manuscript date: October 2011 Disclaimer: This is a working paper, and hence it represents research in progress. The CFTA agreement however is expected to include a sub-agreement on investment that is broad in scope, covering both goods and services. Given the difficulties, the idea of a single currency, first explored by the … logo, main signatories, where signed). A group of countries committed to removing all barriers to the free flow of goods and services between each other, but pursuing independent external trade policies, Form of regional economic integration that combines features of free trade area with common trade policies toward nonmember countries. This policy brief was shared by David Luke, Coordinator of the African Trade Policy Centre (ATPC) at the UN Economic Commission for Africa (UNECA), at tralac’s 2017 Annual Conference on 6-7 April in Cape Town. Five different levels can be visualised as follows: Table 22.1 This includes: 1) enlargement of existing regional integration, including the FTAs between the EU and the Central and Eastern European countries (CEECs), the FTA to be set up between the EU and the Mediterranean countries, and the creation of a Free Trade Area of the Americas (FTAA); 2) linkage between regional integration Another is supporting the work of the high-level task force that is to map out the next stage of regional economic integration — and following through on it. » Download: Brief on Regional Integration and the Continental Free Trade Area, March 2017 (PDF, 418 KB), Email This email address is being protected from spambots. Regional integration is a process in which neighboring states enter into an agreement in order to upgrade cooperation through common institutions and rules. Please enter the email address for your account. Customs Union (CU) – A trading bloc composed of a FTA with a common external tariff (CET) and no or common quotas in trade with non-members. Lesson 1: Stages in Regional Integration 1. Please enter the email address associated with your User account. The provision of common rules for state parties in introducing incentives would help to encourage investment into African countries to accelerate development, and would also help to avoid any race to the bottom. Finally, the CFTA project is being rolled out in parallel with the implementation of the Action Plan for Boosting Intra-African Trade (BIAT), which was adopted by the AU Heads of State in January 2012. 4. regional co-operation. Preferential Trade Area (PTA) – A trading bloc that gives preferential access to certain products from the participating countries. They will also arrange key facts next to the appropriate stage (e.g. It lasted untilMay 31, 1962. This is part 1 of a video giving information on Regional Integration, under the topic Challenges and Opportunities of Regional Integration . QUIZINTRODUCTION XXXX INTRODUCTIONINTRODUCTION This presentation is designed to introduce the concept of regional integration, particularly as this relates to regional integration in the Caribbean.The presentation supports module #4, Regional Integration, which is a component of the Caribbean Secondary Examination Curriculum (CSEC) for Social Studies. In some cases, this can lead to confusion in terminology and on the state of regional economic integration of a specific bloc. The CFTA agreement is also expected to include an appendix on the movement of natural persons involved in services and investment, an area of cooperation that is usually not covered until the establishment of a SM. The first stage has now been completed, with eight RECs formally recognized by the African Union. 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