TRADING BLOCS DEFINITION ECONOMICS FREE

TRADING BLOCS DEFINITION ECONOMICS FREE

By cooperating and signing the EEA agreement, these three EFTA states are able to be part of the EU’s single market and benefit from free trade with the EU without having to apply for EU membership. This bloc is therefore primarily concerned with upholding the four fundamental pillars of the single market which are, the free movement of goods, people, services, and capital. This agreement creates the Internal Market, which integrates the 27 EU member states and three of the EFTA states–namely Iceland, Liechtenstein, and Norway–into one single market. In order to further strengthen trade and economic relations with its neighboring non-EU countries, the EEA was entered into force on 1 January 1994 through the European Economic Area Agreement. It is also the European Free Trade Association (EFTA)’s largest trading partner, as 70% of imported merchandise in EFTA countries comes from the EU.

The European Union (EU) is the world’s largest trading bloc and the second largest economy in the world. The list does not reflect any political opinion of the authors. When creating this list, we intended to display here those ten regional trading blocs with trade arrangements that have the biggest impact in world trade and the economic development of the region. This list of the world’s most prominent regional trading blocs contains information about the blocs’ significance in the global economy, foundations, objectives, member states, and key trade partners. These blocs consist of countries within a specific geographical boundary, which chose to cooperate with each other toward the goal of securing regional economic growth. The list below comprises ten major regional trading blocs in the world economy.

Trading blocs definition economics