Regional Economic Cooperation

Historical Regionalism

•The Zollverein

•The EU

•The Canada-US FTA, and NAFTA

•The current trend to regionalism

Degrees of International Economic Integration

•Single market

•Common market

•Customs union

•Free trade area

•Regional trade agreement

-Reciprocal and concessionary trade agreements

The WTO and Regional Trade Agreement

•Trade-creating agreements versus trade-displacing agreements

Why Go Regional?

•To create more trade

•In case the global approach fails

•As a first step to integration

•As a tool of foreign/security policy

Current Issues in Regionalism

•The EU, integration, and expansion

•NAFTA

-The side agreements

-Investment rules

•Multilateralism and bilateralism

-The FTAA: multilateralism versus hub-and-spoke

•Other regions

-Mercosur

-APEC

-AU