U2 International Agreements, Organization, and Policies

Question 1

Trading Blocs

Answer 1

Regions in which countries agree to support mutual economic growth by opening market to cross-border trade.

Question 2

Reciprocity

Answer 2

Historical version of blocs.

Question 3

Bilateral

Answer 3

Trade between two countries

Question 4

Multilateral

Answer 4

Trade among more than two countries.

Question 5

International Trade Agreements

Answer 5

• CUSMA: US/Mexico/Canada
• Free Trade Agreement of the Americas (FTAA)
• European Union (EU)
• Asia-Pacific Economic Cooperation (APEC)
• Agreement on Internal Trade (AIT)

Question 6

NAFTA/CUSMA

Answer 6

• Started on January 1, 1994
• Extension of the FTA (Canada-USA, 1989)
• Created free trade zone between Mexico, Canada, USA
• Objective is to increase trade, reduce prices and
  costs through increased production, and meet
  the challenges of global competition

Question 7

NAFTA/CUSMA Facts

Answer 7

• 400 million consumers, $9 trillion GDP
• Goods and services between Canada & USA - $2 billion/ day
• 80% of Canadian exports go to USA

Question 8

Free Trade Area of Americas (FTAA)

Answer 8

• Started talks in 1994 Summit
• Same for western hemisphere as European Union (EU)
• Include 34 nations (North, Central, South Americas)
• Objective is to continue to lower trade barriers
  among countries and promote investment without
  government interference.
• GDP in Latin American/ Caribbean grew from $1
  trillion in 2000 to $2.4 in 2001.

Question 9

European Union (EU)

Answer 9

• Political and economic alliance in Europe (27 countries)
• Eliminated trade barriers between countries
• Common currency in most of the countries
• Bordering countries attempting to join, including former communist countries
• Schengen agreement, for most countries, means people can move across bordes with no issues (town in Luxembourg)

Question 10

EU - Benefits

Answer 10

• 380 million customers
• $7.5 Trillion USD GDP
• 2nd to USA in Trade with Canada
• Uniform standards for technical standards
• Mixture of cultures and languages
• Now able to compete internationally (USD, Yen,
  Euro)

Question 11

Asia-Pacific Economic Cooperation (APEC)

Answer 11

• Formed in 1989 to promote trade in Pacific Rim
• Includes 20 countries, ½ of the world’s population
• SE Asia, NE Asia, Australia, South Pacific, New Zealand, Papua New Guinea, Canada
• All Pacific Rim countries eligible
• China and Japan have emerged as major powerhouses

Question 12

Canada and the Pacific Rim

Answer 12

• Economists push for more trade with Japan/Pacific Rim to lessen Canada’s dependence on the
  US
• Asian Development Bank (ADB) predicts by 2025
  Asia will control 57% of world GDP
• Any downturn in US economy turns into downturn
  in Canada, need to diversify to succeed
  independently

Question 13

Comprehensive & Progressive
Transpacific Partnership (CPTPP)

Answer 13

• Trade deal with major nations in the Pacific Ocean
• Started as the TPP but halted during the Trump Presidency
• The CPTPP consists of 11 countries with a total population of 495 million and a combined GDP of $13.5 trillion
• Canada will gain economic advantages, including access to Japan (the third-largest global economy) and emerging markets like Malaysia and Vietnam
• The agreement aims to eliminate tariffs, enhance trade, and safeguard intellectual property rights such as patents, trademarks, and copyrights.