1 / 26

International Economics ecn4181

International Economics ecn4181. Chapter 9: Regional Trading Arrangements Robert J. Carbaugh 9e Bab: 8 INTEGRASI EKONOMI & PAB Dr. Zulkornain Yuso. INTEGRASI EKONOMI.

declan
Download Presentation

International Economics ecn4181

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. International Economicsecn4181 Chapter 9: Regional Trading Arrangements Robert J. Carbaugh9e Bab: 8 INTEGRASI EKONOMI & PAB Dr. Zulkornain Yuso

  2. INTEGRASI EKONOMI • Penggabungan atau penyatuan dasar perdagangan yang mengurangkan diskriminasi atau menghapuskan halangan perdagangan di kalangan negara ahli/anggota dalam kesatuan tersebut. Carbaugh, Chap. 9

  3. Regional trade agreements Types/Tahap of regional trade arrangements (RTAs) • Preferential Trade Agreement (PTA)/ Pakatan Perdagangan Terpilih (ASEAN) • Free trade areas / Kawasan/Blok Perdagangan Bebas (NAFTA, AFTA) • Customs unions/Kesatuan Kastam (Benelux) • Common markets/Pasaran Bersama (EU) • Economic/monetary union (Kesatuan Ekonomi) Carbaugh, Chap. 9

  4. Preferential Trade Agreement (PTA)/ Pakatan Perdagangan Terpilih PTA • Mengenakan halangan perdagangan yang rendah (mengurangkan) kepada negara anggota sahaja. • E.g: ASEAN Carbaugh, Chap. 9

  5. Free trade areas / Kawasan/Blok Perdagangan Bebas • Semua halangan perdagangan dihapuskan antara negara antara negara anggota tetapi setiap anggota berhak mengekalkan halangan perdagangan kepada negara bukan anggota, • Halangan peradagangan antara negara ahli dan bukan ahli tidak seragam. • Menimbulkan masalah transshipment. • E.g: NAFTA (USA, Canada, Mexico), AFTA, EFTA, Mercosur. Carbaugh, Chap. 9

  6. Customs unions/Kesatuan Kastam • Tiada halangan perdagangan antara negara anggota dan mengenakan kadar tarif yang sama bagi negara bukan anggota. • E.g: Kesatuam (Custom) Eropah tahun 1957, Zolverein (1834) – negara jajahan Jerman Carbaugh, Chap. 9

  7. Common markets/Pasaran Bersama • Ciri-ciri CU tetapi faktor-faktor pengeluaran (L, K) bebas bergerak antara negara anggota • E.g: EU pada tahun 1993 Carbaugh, Chap. 9

  8. Economic/monetary union (Kesatuan Ekonomi) • Ciri-ciri CU dan pasaran bersama, tetapi wujud dasar bersama (common) bagi dasar fiskal dan dasar kewangan. • Mempunyai mata wang yang sama • E.g: EU Carbaugh, Chap. 9

  9. Regional trade agreements Effects of regional trade agreements • Static effects (kesan statik) • Trade creation effect (consumption effect, production effect) • Trade diversion effect • Dynamic effects (kesan dinamik) • Economies of scale • Greater competition • Investment stimulus Carbaugh, Chap. 9

  10. Regional trade agreements Static effects of a customs union Carbaugh, Chap. 9

  11. Regional trade agreements: case studies The European Union • Created by the Treaty of Rome (1957) • Policy aims included: • Abolition of tariffs, quotas and other restrictions • Common external tariff • Free movement of capital, labor and business • Common policies on transport, agriculture, and competition and business conduct • Coordination of monetary and fiscal policies Carbaugh, Chap. 9

  12. Regional trade agreements: case studies The European Union (cont’d) • Lowering of barriers caused within-region trade to grow much more quickly than overall world trade in the 1960s • Steps to remove remaining barriers (1985-92) further increased integration • Maastricht Summit (1991) began process of economic and monetary union (EMU) • EMU came into full effect in 2002 with the introduction of a common currency, the euro Carbaugh, Chap. 9

  13. Regional trade agreements: case studies EU Economic & Monetary Union • Member nations which met economic criteria by 1999 replaced their national currencies with the euro in 2002 • New European Central Bank created to control monetary and exchange rate policy • “Convergence criteria” required for membership: • Price stability • Low long-term interest rates • Stable exchange rates • Sound public finances Carbaugh, Chap. 9

  14. Regional trade agreements: case studies Other key EU policies • Common agricultural policy (CAP) • Support payments to farmers • Variable import levies • Export subsidies • Government procurement policies • All EU businesses can bid for larger contracts in any nation Carbaugh, Chap. 9

  15. Regional trade agreements: case studies CAP: variable levies and export subsidies Carbaugh, Chap. 9

  16. Regional trade agreements: case studies Opening up government procurement Carbaugh, Chap. 9

  17. Regional trade agreements: case studies European Union enlargement • The EU is negotiating with 12 applicant nations, mostly transition economies in eastern Europe, for EU membership by 2004 • Candidate members had to demonstrate their fitness by achieving: • Stability of institutions, and guaranteed democracy, rule of law, human rights and protection of minorities • A functioning market economy which is ready to compete in the EU market • Adherence to the EU’s aims of political, economic and monetary union Carbaugh, Chap. 9

  18. Regional trade agreements: case studies Costs & benefits of EMU • Europe does not meet all the requirements of a theoretical “optimal currency area” • Advantages of EMU - real but small: • Lower transaction costs • Price comparisons easier • Exchange rate risk eliminated • Stimulates competition Carbaugh, Chap. 9

  19. Regional trade agreements: case studies Costs & benefits of EMU (cont'd) • Disadvantages of EMU: • Loss of monetary policy and the exchange rates as economic adjustment tools • Use of fiscal policy for adjustment is also constrained • Adjustment to shocks therefore depends on wage flexibility and labor mobility, which are both low in Europe Carbaugh, Chap. 9

  20. Regional trade agreements: case studies North American Free Trade Agmt. (1994) • Gradual and comprehensive elimination of trade barriers among US, Mexico and Canada over 15 years: • Full, phased elimination of import tariffs • Elimination of most NTBs • Protection of intellectual property rights • Dispute settlement procedures • Side agreements on environmental protection and labor law Carbaugh, Chap. 9

  21. Regional trade agreements: case studies NAFTA's benefits • Mexico stood to gain the most, with access to large industrial markets and new inward investment flows • Canada maintained its preferences in the US market and hoped for future access to South American markets • US stood to gain from access to the Mexican market and cheap labor and parts, access to reliable oil supplies, and less immigration pressure; but the benefits were modest Carbaugh, Chap. 9

  22. Regional trade agreements: case studies Concerns about NAFTA • Main US losers from NAFTA would be import-protected industries competing with Mexican producers, and unskilled workers • US industrial workers also worried about lower pay scale in Mexico and plant relocations • Concerns Mexico would not enforce environmental protection measures • Side agreements on environment and labor law were concluded to address those concerns Carbaugh, Chap. 9

  23. Regional trade agreements: case studies NAFTA’s impact so far • Trilateral trade increased significantly • Some US jobs were lost to Mexico, but the numbers were small compared to job creation that came with US growth • Changes in investment flows were small (in relation to total US foreign investment) • Closer political ties were built among the three nations, and they refrained from building new trade barriers even during recession Carbaugh, Chap. 9

  24. Regional trade agreements: case studies Special case: economies in transition • Nations of eastern Europe and the former Soviet Union have been making a transition from a non-market (planned) economy to a market economy since the early 1990s - which has been very disruptive • These nations’ planned economies required them to be largely isolated from world trade - instead, set up their own trading bloc, the Council for Mutual Economic Assistance (CMEA) with only limited trade with the West Carbaugh, Chap. 9

  25. Regional trade agreements: case studies Economies in transition (cont’d) • Even after the collapse of the central planning system, the nations remained tied together because of historical trade links inside CMEA and their common legacy as non-market economies • There is an ongoing debate over the best pace for economic reform (including trade and financial liberalization) - “shock therapy” vs. gradualism Carbaugh, Chap. 9

  26. Regional trade agreements: case studies Economies in transition (cont’d) • Barriers to trade with the West used to make strategies such as countertrade, co-production agreements, joint R&D agreements, and contract manufacturing agreements very common • Gradual elimination of barriers to foreign business in most transition countries has allowed foreign firms to operate in the region more normally in recent years Carbaugh, Chap. 9

More Related