Regional Trade Blocs
Regional trade blocs are arrangements between States to enable parties to benefit from greater access to each other’s markets. Regional trade initiatives and economic integration is integral to international commercial law through its impact on commercial transactions. In particular, by the creation of free-trade and preferential trading areas; economic and monetary unions; and common markets. Some examples include the European Union, North American Free Trade Agreement and Mercosur.
GATT allows the creation of customs unions and free trade areas as an exception to the MFN principle if it facilitates trade and does not raise barriers to trade of other contracting parties.
Read more about this topic: International Commercial Law
Famous quotes containing the word trade:
“I doubt if men ever made a trade of heroism. In the days of Achilles, even, they delighted in big barns, and perchance in pressed hay, and he who possessed the most valuable team was the best fellow.”
—Henry David Thoreau (1817–1862)