Identify and briefly compare the major regional trading groups in Latin America, Asia, and Africa.
Answer:
a. The major trade group in South America is MERCOSUR. In 1991, Brazil, Argentina, Paraguay, and Uruguay established MERCOSUR. MERCOSUR is significant because of its size; it generates 75 percent of South America's GNP. Another major group in South America is the Andean Group (CAN), which is composed of Bolivia, Colombia, Ecuador, and Peru. There are three major regional trading groups in Central America and the Caribbean: the Central American Common Market, the Central American Free Trade Agreement-Dominican Republic (which includes the United States), and the Caribbean Community and Common Market (CARICOM). These groups are hampered by their small markets and dependence on the United States for trade.
b. In Asia, the key group is the Association of South East Asian Nations (ASEAN), which was organized in 1967 and comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. It is promoting cooperation in many areas, including industry and trade. In 1993, the ASEAN countries formed the ASEAN Free Trade Area (AFTA) to deal with the specific intrazonal trade issues.
c. The Asia Pacific Economic Cooperation (APEC) is massive since it includes every country that borders the Pacific Ocean. In spite of the size of APEC, it does not engage in treaties like the other trade agreements, so it has potential but not much teeth.
d. Africa is divided into many different trading groups based on geographic proximity and links to former colonial powers. Most groups are hampered by poverty, small market size, and dependence on former colonial powers. The African Union is modeled loosely on the EU, but that type of integration will likely be very difficult.