TRADE BLOCS

Analyze the Impact of trade blocs have on globalization

Analyze the Impact of trade blocs have on globalization

Introduction

Trade agreements are documents signed by two or more countries to facilitate imports and exports of all countries that make up the treaty. These are mainly characterized by the gradual elimination of tariffs or taxes that pay for the products to enter another country, setting standards that must be respected by producers in developing countries, and mechanisms to resolve disputes that may arise. This paper will discuss the impact that two trade blocs have on globalization.

Analyze how globalization has impacted political and economic systems

In Latin America and the Caribbean Free Trade Agreements are a continuing source of conflict and social opposition. Many things, and studies confirm and report the negative social, economic, cultural and environmental region has accounted for the signing of these treaties (Bhagwati, 2007). The worst lies regarding the Free Trade Agreement of North America, signed between the U.S., Canada and Mexico. With 16 years of existence, has shown how increased unemployment in the three countries, exacerbated the rural-urban movement (as well as South-North migration) intensified environmental destruction and food sovereignty was undermined, especially in peasant and indigenous communities.

But the EU shows great interest in the cake Latin America. The region has abundant natural resources such as hydrocarbons strategic, minerals, biodiversity, fertile land and water. Furthermore, this implies a major interest in terms of control over communications, energy, transport and banking. The trade and financial globalization is essential for the EU to maintain economic growth, allowing you to access to natural resources abroad to demand their production and consumption chain, and the projection of their transnational and global strengthening its position and influence in the global geopolitical map (Bhagwati, 2007). The States of Latin America and the Caribbean account for only 5% of EU external trade, having increased trade volume more than doubled between 1990 and 2006. From their countries to the EU is exported mostly agricultural products and raw materials and machinery imported from Europe, transport equipment and chemicals (Jeffrey, 2007).

The role that the countries involved in the trade bloc play in the global economy

The EU signed trade agreements with Mexico in 2000, with Chile in 2002 and since 2004 the negotiations with the MERCOSUR countries are stagnant. In 2008 he signed an economic partnership agreement with 15 Caribbean countries that oblige them to eliminate their tariffs at least 80% of EU imports for a period of 15 years. In 2009, the European Union reaffirmed its intention to complete negotiations of the Agreement with Central America, including Honduras, despite the coup. Also negotiations with Peru and Colombia show that about 'democratic principles' economic interests prevail. In particular, the Spanish government supports the achievement of the FTA between the EU and Colombia despite the serious and systematic violations of human rights in the Andean country, mainly perpetrated by state agents. Ecuador and Bolivia have refused to accept such agreements (Sachs, 2006).

The economic impact of the trade bloc on the countries involved

Estimated ...