ASEAN, NAFTA and OPEC

Association of Southeast Asian Nations (ASEAN)

The Association of Southeast Asian Nations (ASEAN) was formed in 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand to promote political and economic cooperation and regional stability. The member countries of the Association of Southeast Asian Nations (ASEAN) are Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Laos and Myanmar. The ASEAN Community is comprised of three pillars, the Political-Security Community, Economic Community and Socio-Cultural Community. Every year following the ASEAN Ministerial Meeting, ASEAN holds its Post-Ministerial Conference (PMC) to which the Secretary of State is invited. In 1994, ASEAN took the lead in establishing the ASEAN Regional Forum (ARF), which now has 27 members.

Main objectives

To promote the economic, social and Cultural Development of the region through cooperative programmers
To safeguard the political and economic stability of the region against big power rivalry; and
To serve as a forum for the resolution of intra-regional differences.

NAFTA

North American Free Trade Agreement (NAFTA) established a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. NAFTA immediately lifted tariffs on the majority of goods produced by the signatory nations. It also calls for the gradual elimination, over a period of 15 years, of most remaining barriers to cross-border Investment and to the movement of goods and Services among the three countries.

NAFTA was created to eliminate tariff barriers to agricultural, manufacturing, and services; to remove investment restrictions; and to protect Intellectual Property Rights. This was to be done while also addressing environmental and labor concerns (although many observers charge that the three governments have been lax in ensuring environmental and labor safeguards since the agreement went into effect).

Small businesses were among those that were expected to benefit the most from the lowering of trade barriers since it would make doing business in Mexico and Canada less expensive and would reduce the red tape needed to import or export goods.

Highlights of NAFTA included:

Tariff elimination for qualifying products. Before NAFTA, tariffs of 30 percent or higher on export goods to Mexico were common, as were long delays caused by paperwork. Additionally, Mexican tariffs on U.S.-made products were, on Average, 250 percent higher than U.S. duties on Mexican products. NAFTA addressed this imbalance by phasing out tariffs over 15 years. Approximately 50 percent of the tariffs were abolished immediately when the agreement took effect, and the remaining tariffs were targeted for gradual elimination. Among the areas specifically covered by NAFTA are construction, engineering, accounting, advertising, consulting/management, architecture, Health-care management, commercial Education, and tourism.
Elimination of nontariff barriers by 2008. This includes opening the border and interior of Mexico to U.S. truckers and streamlining border processing and licensing requirements. Nontariff barriers were the biggest obstacle to conducting business in Mexico that small exporters faced.
Establishment of standards. The three NAFTA countries agreed to toughen health, safety, and industrial standards to the highest existing standards among the three countries (which were always U.S. or Canadian). Also, national standards could no longer be used as a barrier to free trade. The speed of export-product inspections and certifications was also improved.
Supplemental agreements. To ease concerns that Mexico’s low wage scale would cause U.S. companies to shift production to that country, and to ensure that Mexico’s increasing industrialization would not lead to rampant pollution, special side agreements were included in NAFTA. Under those agreements, the three countries agreed to establish commissions to handle labor and environmental issues. The commissions have the power to impose steep fines against any of the three governments that failed to impose its laws consistently. Environmental and labor groups from both the United States and Canada, however, have repeatedly charged that the regulations and guidelines detailed in these supplemental agreements have not been enforced.
Tariff reduction for motor vehicles and auto parts and automobile rules of origin.
Expanded telecommunications trade.
Reduced textile and apparel barriers.
More free trade in agriculture. Mexican import licenses were immediately abolished, with most additional tariffs phased out over a 10-year period.
Expanded trade in financial services.
Opening of insurance markets.
Increased investment opportunities.
Liberalized regulation of land transportation.
Increased protection of intellectual property rights. NAFTA stipulated that, for the first time, Mexico had to provide a very high level of protection for intellectual property rights. This is especially helpful in fields such as computer Software and chemical production.
Mexican firms will no longer be able to steal intellectual property from companies and create a “Mexican” version of a product.
Expanded the rights of American firms to make bids on Mexican and Canadian government procurement contracts.

Organization of the Petroleum Exporting Countries(OPEC)

The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by: Qatar (1961) – terminated its membership in January 2019; Indonesia (1962) – suspended its membership in January 2009, reactivated it in January 2016, but decided to suspend it again in November 2016; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership in December 1992, reactivated it in October 2007, but decided to withdraw its membership effective 1 January 2020; Angola (2007); Gabon (1975) – terminated its membership in January 1995 but re-joined in July 2016; Equatorial Guinea (2017); and Congo (2018). OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965.

OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the Industry.

The OPEC Secretariat is the executive organ of the Organization of the Petroleum Exporting Countries (OPEC). Located in Vienna, it also functions as the Headquarters of the Organization, in accordance with the provisions of the OPEC Statute.

Organization of the Petroleum Exporting Countries (OPEC) in several other languages is an intergovernmental organization of 14 nations as of May 2017, founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, Venezuela), and headquartered since 1965 in Vienna. As of 2016, the 14 countries accounted for an estimated 44 percent of global oil production and 73 percent of the world’s “proven” oil reserves, giving OPEC a major influence on global oil prices that were previously determined by American-dominated multinational oil companies.

OPEC’s members are Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia (the de facto leader), United Arab Emirates, and Venezuela, while Indonesia is a former member. Two-thirds of OPEC’s oil production and reserves are in its six Middle Eastern countries that surround the oil-rich Persian Gulf.

The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization comprising ten countries in Southeast Asia, which are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand, and Vietnam. The organization was established on 8 August 1967 by the signing of the Bangkok Declaration (Bangkok Accord) by the five founding members (Indonesia, Malaysia, the Philippines, Singapore, and Thailand). Since then, membership has expanded to include Brunei (1984), Vietnam (1995), Laos and Myanmar (1997), and Cambodia (1999).

The main goals and objectives of ASEAN are to accelerate economic Growth, social progress, cultural development, and the promotion of regional peace and stability. ASEAN has also been working to promote regional integration through the establishment of the ASEAN Economic Community (AEC), which was launched in 2015.

The AEC is a single market and production base with free flow of goods, services, investment, skilled labor, and capital. It is also a region with free movement of people, goods, services, and capital. The AEC is expected to boost economic growth and development in the region, and to make ASEAN a more competitive player in the global economy.

The North American Free Trade Agreement (NAFTA) is an agreement between Canada, Mexico, and the United States that came into effect on January 1, 1994. NAFTA is the world’s largest free trade agreement, with a combined GDP of over $20 trillion.

The main goals of NAFTA are to eliminate tariffs and other trade barriers, to promote investment, and to facilitate the movement of goods and services across borders. NAFTA has been successful in achieving these goals, and has led to increased trade and investment between the three countries.

However, NAFTA has also been criticized for its impact on jobs and the Environment. Some critics argue that NAFTA has led to job losses in the United States, as companies have moved production to Mexico where labor costs are lower. Others argue that NAFTA has led to Environmental Degradation, as companies have been allowed to pollute more freely in Mexico.

The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental organization of 13 oil-producing countries. OPEC was founded in Baghdad, Iraq, on September 14, 1960, by the five founding members: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The organization’s stated mission is to coordinate and unify the petroleum policies of its member countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the petroleum industry.

OPEC’s headquarters are located in Vienna, Austria. The organization’s current Secretary General is Mohammad Barkindo, who was elected in June 2016.

OPEC’s member countries are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

OPEC’s decisions are made by consensus, and are binding on all member countries. The organization’s main decision-making body is the Conference, which is made up of representatives from each member country. The Conference meets at least once a year, and more often if necessary.

OPEC also has a number of other bodies, including the Board of Governors, the Economic Commission Board, and the Technical Committee.

OPEC has been a major player in the global oil market for over 50 years. The organization’s decisions have a significant impact on the price of oil, and on the economies of oil-producing and oil-consuming countries.

In recent years, OPEC has come under pressure from non-OPEC producers, such as the United States and Russia, to increase production in order to lower oil prices. OPEC has resisted these calls, arguing that it needs to maintain prices at a level that will ensure the long-term health of the oil industry.

OPEC’s future is uncertain. The organization is facing a number of challenges, including the rise of non-OPEC producers, the development of new technologies, and the changing global energy landscape. It remains to be seen how OPEC will respond to these challenges and whether it will be able to maintain its role as a major player in the global oil market.

What is the European Union (EU)?

The European Union (EU) is a political and Economic Union of 27 member states that are located primarily in Europe. The EU operates through a system of supranational institutions and intergovernmental-negotiated decisions by the member states. It aims to bring about the coordination of member states’ economic policies, a single market in which goods and people move freely, and common policies on trade, agriculture, Fisheries-2/”>Fisheries, and regional development.

What are the benefits of being a member of the EU?

There are many benefits to being a member of the EU. Some of the most important benefits include:

Access to the single market: The single market is a single market in which goods, services, capital, and people move freely. This means that businesses can sell their goods and services to any other member state without having to pay tariffs or other trade barriers.
Free movement of people: EU citizens have the right to live, work, and study in any other member state. This can be a great opportunity for people who want to experience a new culture or improve their job prospects.
Common policies on trade, agriculture, fisheries, and regional development: The EU has common policies on trade, agriculture, fisheries, and regional development. This means that member states work together to negotiate trade deals, support farmers, and develop poorer regions.
Access to EU funding: The EU provides funding for a wide range of projects, including research, development, and Infrastructure-2/”>INFRASTRUCTURE. This funding can be a great way to support businesses and improve the lives of people in member states.

What are the challenges of being a member of the EU?

There are also some challenges to being a member of the EU. Some of the most important challenges include:

The need for consensus: Decisions in the EU are made by consensus, which means that all member states must agree. This can be difficult to achieve, especially on controversial issues.
The cost of membership: The EU is a large and complex organization, and it costs Money to run it. This cost is shared by all member states.
The loss of Sovereignty: When countries join the EU, they give up some of their sovereignty to the EU institutions. This can be a difficult adjustment for some countries.

What is the future of the EU?

The future of the EU is uncertain. The EU is facing a number of challenges, including the Rise of Nationalism, the refugee crisis, and the economic crisis. It is unclear how the EU will address these challenges. Some people believe that the EU will continue to grow and become more integrated. Others believe that the EU will break up. It is too early to say what the future holds for the EU.

Question 1

Which of the following is not a Regional Trade Agreement?

(A) ASEAN
(B) NAFTA
(C) OPEC
(D) WTO

Answer

Question 2

Which of the following is not a goal of the World Trade Organization?

(A) To promote trade Liberalization-2/”>Liberalization
(B) To reduce tariffs and other trade barriers
(C) To settle trade disputes between member countries
(D) To protect the environment

Answer

(D) The WTO does not have a specific goal of protecting the environment. However, it does recognize that trade can have an impact on the environment, and it encourages member countries to take steps to minimize negative environmental impacts.

Question 3

Which of the following is not a benefit of regional trade agreements?

(A) They can reduce tariffs and other trade barriers, which can lead to lower prices for consumers.
(B) They can increase competition, which can lead to lower prices and higher quality goods and services.
(C) They can help to create jobs.
(D) They can lead to increased economic growth.

Answer

(D) Regional trade agreements can lead to increased economic growth, but they are not guaranteed to do so. In some cases, they can actually lead to decreased economic growth if they are not implemented properly.

Question 4

Which of the following is not a challenge of regional trade agreements?

(A) They can lead to trade diversion, which occurs when countries trade more with each other within the agreement than they do with countries outside the agreement.
(B) They can lead to the loss of jobs in some sectors of the economy.
(C) They can be difficult to negotiate and implement.
(D) They can lead to increased inequality.

Answer

(D) Regional trade agreements can lead to increased inequality, but they are not guaranteed to do so. In some cases, they can actually lead to decreased inequality if they are implemented properly.

Question 5

Which of the following is not a criticism of the World Trade Organization?

(A) It is too powerful.
(B) It is not democratic.
(C) It is not transparent.
(D) It is not fair.

Answer

(D) The WTO is often criticized for being unfair, but it is also criticized for being too powerful, not democratic, and not transparent.