Regional Economic Integration - Types, leading Economic Blocs

Regional Economic Integration - Types, leading Economic Blocs

 क्षेत्रीय आर्थिक एकीकरण 

Economic integration is an agreement between different nations that includes the reduction or elimination of trade barriers (tariffs or non-tariff) and the coordination of monetary and fiscal policies.

Regional economic integration occurs when countries come to the formation of free trade arrangements or customs unions, giving members preferential trade access to each other's markets.

Regional economic integration has enabled countries to focus on issues that are important for their development as well as to encourage trade relations between neighbouring countries.

Reasons for Regional Economic Integration

Geographic Proximity (भौगोलिक निकटता)

Similar Consumer's Taste, Needs and Preferences 

Easy Distribution Channels (सजिलो वितरण च्यानलहरू)

Common History and Interests

Common Economic Opportunities

Common Economic Problems and Challenges

Types (Stages - Phases) of Regional Economic Integration

1. PTA - Preferential Trading Area :(Reduces only tariffs rates for member nation{SAPTA- South Asian Preferential Trading Agreements})
2. FTA - Free trade Area :(Eliminating all tariffs and non-tariff barriers {SAFTA - South Asia Free Trade Area, NAFTA - North American Free Trade Area, BIMSTEC-FTA} 
3. Custom Union :(Common tariff and non-tariff barriers on imports from non member countries)
4. Economic Union ::(Greater economic harmonisation, Single currency like Euro for European Union (EU),Uniform Monetary System, Union of regulation authorities)
5. Political-Economic Union: Single Economic Political Identity- UAE (United Arab Emirates, and EU to emerge as the one soon)