The Benefits of Reducing International Trade Barriers
As you read this section, think about the products or services you use daily that are possible due to international trade. How would you have to adapt if governments began to restrict international trade?
Other Trading Blocs
Other countries have also opted for economic integration. Four historical rivals in South America - Argentina, Brazil, Paraguay, and Uruguay - have established MERCOSUR (for Mercado Commun del Sur) to eliminate trade barriers. A number of Asian countries, including Indonesia, Malaysia, the Philippines, Singapore, and Thailand, are cooperating to reduce mutual barriers through ASEAN (the Association of Southeast Asian Nations).
Only time will tell whether the trend toward regional trade agreements is good for the world economy. Clearly, they're beneficial to their respective participants; for one thing, they get preferential treatment from other members. But certain questions still need to be answered more fully. Are regional agreements, for example, moving the world closer to free trade on a global scale - toward a marketplace in which goods and services can be traded anywhere without barriers?