Trade blocs

European Union (EU)

  • the European Union is a regional trade bloc, that lowers trade barriers between its members in order to promote free trade regionally

  • it has 27 member states

  • it also provides regional development grants to allow economic growth in deprived areas of a country

  • it provides subsidies to farmers in order to keep them competitive in the global market

  • it overall strengthens its position in global trade, as it is a large player on the global trade (and is a member of the G20)

  • however, the process of subsidising farmers is against the rules of the WTO, which means there is conflict there

Association of Southeast Asian Nations (ASEAN)

  • the Association of Southeast Asian Nations