You economic blocks comprise the formation of regional markets between countries in order to dynamize and integrate the economy of its members, through the free movement of goods or the reduction of taxes levied on imports. The trend towards the creation and diffusion of economic blocks around the world happened after the end of the Cold War, but its practice began to occur after the end of World War II (1939-1945).
Initially, economic blocs were treated as a counterpoint, an opposition to globalization. It was imagined that its formation would enhance commercial dynamics at the regional level and weaken them globally. However, today it is known that the economic blocs are, in fact, one of the main elements that provided the instrumentalization of an economy on a global level.
This is because, in addition to regionally integrating countries, the formation of economic agreements enhances trade with the market external, through common tariffs and market strategies, aimed at mitigating the effects of competition and boosting exchanges commercials.
The first international agreement between countries to be established in the world was the Benelux, which would be the seed for the further formation of the European Union. The Benelux consisted of the trade union with the reduction of customs tariffs between Belgium, Holland and Luxembourg.
Among the main economic blocks in the world, we can mention: European Union, CIS, Nafta, Apec, Asean, Mercosur and many others. Look at the map below:
Map with most economic blocks in the world
Below is a summary of the main economic blocks in the world:
THE European Union it is today's main economic bloc. It currently has 28 member countries, presenting, in addition to strong economic and commercial dynamics, a high level of organization, which even includes the free movement of people between the nations that are part of the block.
THE CIS– Commonwealth of Independent States – is the economic formation constituted by the countries that were part of the former Soviet Union (USSR), with except for Estonia, Latvia and Lithuania (which were never part of the bloc), as well as Georgia (which left the group in 2009). The organization of this bloc is due to the fact that, when the USSR emerged and industrialized, it interconnected the trade and industries between the various republics that made it up, which left them extremely interdependent. each other.
O NAPHTHA – North America Free Trade Agreement or North American Free Trade Agreement – is composed of only three countries: United States, Canada and Mexico. The bloc was created in 1993 to face the European Union. Its organization is through free trade.
O Mercosur – Southern Common Market – was created in 1993 and involves some South American countries: Brazil, Argentina, Paraguay, Uruguay and Venezuela, while Ecuador, Chile, Colombia, Peru and Bolivia participate as members associates.
Economic blocs are classified into four main types: free trade zone, customs union, common market and economic and monetary union.
At Free Trade Zone there is the reduction or extinction of customs tariffs between countries of the same economic bloc. This type of agreement does not include other elements, such as the adoption of a single currency or the free movement of people. Example: NAFTA.
At Customs union there is the inclusion of the free trade zone increased to the Common External Tariff (TEC), in which member countries adopt the same tariffs for their exports and imports. Example: Mercosur.
At the common market there is the most advanced integration between countries that are part of the same bloc. It aims, in addition to the elimination of customs tariffs, for the total integration into circulation of goods, merchandise, capital and people. Example: European Union.
Finally, the Economic and Monetary Union it is when the countries of the same bloc adopt a single currency of free circulation between them. Example: the Euro, in the European Union.
By Me. Rodolfo Alves Pena
Source: Brazil School - https://brasilescola.uol.com.br/o-que-e/geografia/o-que-e-bloco-economico.htm