WebGuide - International Trade Agreements

International Trade Agreements are the framework by which much of the world's economy is organized.  As you begin to consider the best markets for your products or services, you also need to take into consideration the trade agreements which may impact on you potential for success.

• APEC - The Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region.  APEC has 21 members. The word 'economies' is used to describe APEC members because the APEC cooperative process is predominantly concerned with trade and economic issues, with members engaging with one another as economic entities.

• CAFTA (United States-Central America-Dominican Republic Free Trade Agreement) Although still in negotiation, CAFTA provides benefits to Michigan farmers and exporters.
  • Michigan Agriculture Benefits From CAFTA-DR - Exports of farm products help boost Michigan’s farm prices and income. Such exports help support about 13,300 jobs both on and off the farm in food processing, storage, and transportation. In 2003, Michigan's farm cash receipts were $3.8 billion, and agricultural exports were estimated at $842 million, putting its reliance on agricultural exports at 22 percent.
  • Michigan Benefits from CAFTA-DR - Michigan's export shipments of merchandise ­ manufactures and non-manufactures to the CAFTA­DR region (Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua) totaled $125 million in 2004, more than double the $61 million worth of goods the state shipped to CAFTA-DR markets in 2000.

• EEC - The European Union (EU) is a family of democratic European countries, committed to working together for peace and prosperity. It is not a State intended to replace existing states, but it is more than any other international organization. The EU is, in fact, unique. Its Member States have set up common institutions to which they delegate some of their sovereignty so that decisions on specific matters of joint interest can be made democratically at European level.  The European Economic Community has also been referred to as "Internal Market", "EEC" and "Single Market".

• European Free Trade Association - Iceland, Liechtenstein, Norway and Switzerland are members of EFTA. The EFTA Convention established a free trade area among its Member States in 1960. In addition, the EFTA States have jointly concluded free trade agreements with a number of countries worldwide.

• Mercosur - The Common Market of the Southern Cone (MERCOSUL in Portuguese, MERCOSUR in Spanish) was established in 1991. MERCOSUL is composed of Brazil, Argentina, Uruguay, and Paraguay, with Chile and Bolivia as associate members. MERCOSUL is the world’s second largest customs union and fourth largest consumer market.

• NAFTA - NAFTA entered into force on January 1, 1994. It is the most comprehensive and largest regional trade agreement in the world, with nearly 400 million people producing over $8 trillion dollars worth of goods and services.

 

Date Updated: March 20, 2007