Page 254 - DECO503_INTERNATIONAL_TRADE_AND_FINANCE_ENGLISH

International Trade and Finance

Notes • It is a happy augury that India’s regional relationships are developing a fresh thrust and a new
momentum. In a world of shrinking distances, rising expectations and soaring new dreams, the
human family has to learn to sink its differences and maximise cooperation all around to carve
a new destiny. In that historic journey, entities like the EU, ASEAN and increasingly SAARC
standout as important milestones. Regional cooperation will be propelled as much by the historic
force of globalisation as by a new dynamism in bilateral equations.
• For Asia to add this momentum would be necessary to bury the hatchet of earlier conflicts and
rivalries and move from the security of weapons to the firmer security of regional and global
cooperation, from the worn out concept of Mutually Assured Destruction to that of Mutually
Assured Cooperation, from the battle for humanity’s survival to that of growth for all. A brave
new world beckons to us free of destitution, deprivation and discrimination if only we could
heed its call and move towards it in one file, our steps in a harmonious blend.

22.4 Key-Words

1. Economic union : An economic union is a type of trade bloc which is composed of a common
market with a customs union.
2. Upsurge : a sudden forceful flow.
22.5 Review Questions

1. Write a short note on Phnom Penh Summit.
2. Discuss the role of SAARC and SAPTA.
3. What are the objectives of Asean union?
Answers: Self-Assessment

1. (i)(b)
(ii) SAARC stands for South Asian Association for Regional Co-operation. It is established on
December 08,1985. It has 8 member countries. Member courtiers are
1. Bangladesh, 2. India. 3. Pakistan. 4. Srilanka.5. Nepal. 6. Bhutan, 7. Maldives. 8. Afghanistan.
(iii) SAARC Preferential Trading Arrangement.
(iv) South Asian Free Trade Area.
22.6 Further Readings

1. Berglas, Eitan (1981), "Harmonization of Commodity Taxes: Destination, Origin
and Restricted Origin Principles," Journal of Public Economics, 16, pp. 377-387.
2. Bhagwati, Jagdish and Anne Krueger (1973), Exchange Control, Liberalization
and Economic Development, American Economic Review, 63 (2), May, 419-427.
3. Bhagwati, Jagdish and Arvind Panagariya (1996), "Preferential Trading Areas
and Multilateralism: Strangers, Friends or Foes," in J. Bhagwati and A. Panagariya
(eds.), The Economics of Preferential Trade Agreements, Washington D.C.: AEI
Press.
4. Grossman, Gene and Elhanin Helpman (1995), The Politics of Free-Trade
Agreements, The American Economic Review, 85 (4), 667-690.

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