2000: Nice Council paves way for eastward expansion
10 states approved for entry in April 2003
IV. Regional Integration in Africa & Asia
A. African Integration Efforts
Several enduring subregional monetary unions (countries w/ linked currencies)
No major examples of tariff elimination via FTAs, customs unions, or common markets
the West African Economic & Monetary Union launched in 2000 aims at converting a long-running monetary union into an economic union
B. Asian Integration Efforts
While major shares of many Asian countries’ trade is focused regionally, there has been minimal use of formal integration accords
The members of the long-running ASEAN security pact agreed in 1992 to form a FTA with all tariffs to be eliminated by 2008
minimal progress has taken place so far
The members of the large Asia-Pacific Economic Cooperation group made a non-binding agreement in 1994
to zero out tariffs among wealthy members by 2010
to zero out tariffs among all members by 2020
V. Past & Current Integration in the Americas
A. Subregional
1. CENTRAL AMERICAN COMMON MARKET (CACM) [1960]
Costa Rica (1962); El Salvador; Guatemala; Honduras; Nicaragua
no firm timetable
progress in 1990s toward FTA & customs union (esp. in “Northern ”)
inclusion of Panama in talks beginning in 1993
signed FTA w/ the U.S. in May 2004
the pact reopened talk of “hub & spoke” EAI
2. ANDEAN PACT [1969]
Bolivia; Colombia; Chile {out '76}; Ecuador; Peru (suspended '92 & then in}; Venezuela {in '73}
FTA by 1982 not met
reinvigorated by 1990 Act of La Paz
est. Andean Community
many tariffs eliminated by 1992
1/1/95: customs union est. w/ exceptions
6/00: agree to common market by 12/31/05
trade growing at 30%/year among members
3. CARICOM [1973]
(Caribbean Community and Common Market)
Barbados, Guyana, Jamaica, Trinidad & Tobago
Antigua & Barbuda, Belize, Dominica, Grenada, Montserrat, St.Kitts-Nevis, St. Lucia, St.Vincent & the Grenadines all joined in 1974; the Bahamas (1983), Suriname (1995), & Haiti (pending) joined later
roots in smaller CARIFTA formed in 1968
goal of Customs Union by 1983 not met
reinvigorated by 1989 summit meeting
est. working groups in several single market initiatives
most tariffs eliminated by 1991
remaining tariffs for poorer states largely phased out by 2001
1992: customs union to be phased in by 1998
to date, only 7 members have fully implemented the CET
4. SOUTHERN CONE COMMON MARKET (MERCOSUR) [1991]
Argentina; Brazil; Paraguay; Uruguay
goal of Common Market by 12/31/95
customs union on 12/31/95 w/ several exceptions
trade expanded rapidly among members until late ’90s