In your individual assignments this week you will be analyzi

In your individual assignments this week, you will be analyzing some of the trade pacts being formed in countries in South America and Asia.

Use the Internet to find out about at least one new trade pact in South America and one in Asia and explain which countries are the participants.

Explain how these new trade pacts will affect the import/export business.

Solution

Trade pact or trade agreements refer to the treaty made between different countries regarding tax, tariff and trade.

Union of South American nations (USAN) is one of the trade pact made between 12 South American countries. The group maintains common currency, parliament, and passport. It helped in free movement of people between the 12 countries. It also enables the member countries in providing infrastructure coordination to each other. Furthermore, it has also helped to develop a strong mechanism for regional security and military co-operation.

Trans pacific partnership is a trade pact proposed between several Pacific Rim countries regarding various economic policies. It would help to reduce various trade barriers between the countries. Besides this, it would also establish standards for labor and environmental laws. Furthermore, it would also help in creation of new job opportunities.