![]() However, some documentation requirements remain to challenge exporters and importers in the region-along with perhaps deeper problems arising from cultural and political differences, the movement of labor and companies across borders, and inadequate infrastructure in Mexico. ![]() Under NAFTA, a large number of tariffs were dropped immediately and the rest scheduled for gradual elimination. The North American Free Trade Agreement of 1994 aims to create a unified free trade zone comprising Canada, the United States, and Mexico by eventually eliminating all barriers to trade such as tariffs and other protective measures. North American Free Trade Agreement (NAFTA): Some of the larger regional trading blocs include the North American Free Trade Agreement (NAFTA), the European Free Trade Association (EFTA), the Caribbean Community (CARICOM), the African Union (AU), the Union of South American Nations (UNASUR), the Eurasian Economic Community (EurAsEC), the Arab League (AL), the Association of Southeast Asian Nations (ASEAN), the Central European Free Trade Agreement (CEFTA), and the Pacific Islands Forum (PIF). ![]() There are also regional trading blocs that form when nations within a particular region join together to reap the benefits. (This is not be confused with an employee collective bargaining group).Ĭountries can belong to a variety of different trading blocs, and the World Trade Organization tracks the status of proposed blocs. In these instances, “union” refers to a group of two or more countries that form a unit that shares the same philosophies on certain aspects of trade. Economic and monetary unions (made up of common market, customs union, and monetary union).Customs and monetary unions (made up of customs and currency unions share the same external trade policy and currency).Economic unions (made up of common market and customs union as described above).Common markets (made up of free trade area in which physical, technical, and fiscal barriers are reduced as much as possible).Customs unions (made up of free trade area with common external staff).Preferential trade agreements (allow their member countries to have preferential access to certain products from other member countries).Milner in their book The Political Economy of Regionalism, there are different types of trading blocs in supply chain management and logistics, including: A trading bloc is a preferential trade agreement between a group of countries designed to reduce or remove trade barriers between its members. In response to these challenges, countries (and even companies) have begun splitting their supply chains into smaller segments called trading blocs. These factors make it difficult to manage supply chains effectively. There are numerous challenges facing supply chain managers today, including shrinking market windows, inventory carrying costs, and supplier fragmentation. Supply chain management has become increasingly fragmented and more complex. Understanding Trading Blocs in Supply Chain Management and Logistics:
0 Comments
Leave a Reply. |