Trade bloc facts for kids
A trade bloc is like a special club for countries. In this club, countries agree to make it easier to trade with each other. They do this by lowering or getting rid of things that make trade hard, like tariffs (which are taxes on goods coming into a country) or other rules that slow down trade.
These trade clubs can be simple agreements between a few countries, like the USMCA (United States-Mexico-Canada Agreement). Or, they can be part of a bigger group, like the European Union. Depending on how closely countries want to work together, trade blocs can be different types. They can be areas where trade is just a little bit easier, or they can be groups that act almost like one big market.
Contents
What Trade Blocs Do

Trade blocs have been around for a long time! For example, the Hanseatic League was a powerful trade group in Northern Europe from the 1100s to the 1600s. Another example is the German Customs Union, which helped German states trade better in the 1800s.
Many new trade blocs started forming in the 1960s, 1970s, and again in the 1990s. By 1997, more than half of all global trade happened within these regional groups.
Experts say that successful trade blocs often have a few things in common:
- Countries have similar levels of wealth (measured by GNP).
- They are geographically close to each other.
- They have similar or compatible rules for trading.
- They are committed to working together as a region.
Some people who support global free trade don't like trade blocs. They think these blocs make it easier for countries in the group to trade with each other, but harder for them to trade with countries outside the group. However, other experts believe that trade blocs can actually help the global trading system grow.
Understanding Trade Bloc Terms
It's helpful to know some special words used for trade blocs:
Common Market Explained
A common market is a step where countries in a trade bloc work even more closely together. It's like moving towards becoming one big market.
Single Market Explained
A single market is a type of trade bloc where most trade barriers for goods are gone. It also means that people, money, and services can move freely between the countries. This makes it much easier for businesses to operate across borders.
Trade Bloc Statistics
This table shows some interesting facts about different trade blocs, including their population and how much money they make (Gross Domestic Product or GDP).
This list is based on the data obtained from Statistics Division.
Trade bloc | Population | Gross domestic product (USD) | Members | |||
---|---|---|---|---|---|---|
2006 | 2007 | growth | per capita | |||
Economic and monetary unions | ||||||
EMU | 324,879,195 | 10,685,946,928,310 | 12,225,304,229,686 | 14.41% | 37,630 | |
OECS (sovereign states) | 593,905 | 3,752,679,562 | 3,998,281,731 | 6.54% | 6,732 | |
OII | 504,476 | 12,264,278,329 | 14,165,953,200 | 15.51% | 28,081 | |
CCCM | 6,418,417 | 39,616,485,623 | 43,967,600,765 | 10.98% | 6,850 | |
Customs and monetary unions | ||||||
CEMAC | 39,278,645 | 51,265,460,685 | 58,519,380,755 | 14.15% | 1,490 | |
UEMOA | 90,299,945 | 50,395,629,494 | 58,453,871,283 | 15.99% | 647 | |
Customs unions | ||||||
CAN | 96,924,486 | 281,269,141,372 | 334,172,968,648 | 18.81% | 3,448 | |
EAC | 127,107,838 | 49,882,030,443 | 61,345,180,041 | 22.98% | 483 | |
EUCU | 574,602,745 | 15,331,827,900,202 | 17,679,376,474,719 | 15.31% | 30,768 |
33
|
GCC | 36,154,528 | 724,460,151,595 | 802,641,302,477 | 10.79% | 22,200 | |
MERCOSUR | 271,304,946 | 1,517,510,000,000 | 1,886,817,000,000 | 12.44% | 9,757 | |
SACU | 58,000,000 | 1,499,811,549,187 | 1,848,337,158,281 | 23.24% | 6,885 | |
Preferential trade areas and Free trade areas | ||||||
AANZFTA-ASEAN+3 | 2,085,858,841 | 10,216,029,899,764 | 11,323,947,181,804 | 10.84% | 5,429 |
15
|
ALADI | 499,807,662 | 2,823,198,095,131 | 3,292,088,771,480 | 16.61% | 6,587 | |
AFTZ | 553,915,405 | 643,541,709,413 | 739,927,625,273 | 14.98% | 1,336 |
26
|
APTA | 2,714,464,027 | 4,868,614,302,744 | 5,828,692,637,764 | 19.72% | 2,147 |
6
|
CARIFORUM-EUCU-OCTs | 592,083,950 | 15,437,771,092,522 | 17,798,283,524,961 | 15.29% | 30,060 |
67
12 CCCM members
33 EUCU members 3 OII members ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |
CACM | 37,388,063 | 87,209,524,889 | 97,718,800,794 | 12.05% | 2,614 | |
CEFTA | 27,968,711 | 110,263,802,023 | 135,404,501,031 | 22.80% | 4,841 | |
CISFTA | 272,897,834 | 1,271,909,586,018 | 1,661,429,920,721 | 30.62% | 6,088 |
11
|
DR-CAFTA-US | 356,964,477 | 13,345,469,865,037 | 14,008,686,684,089 | 4.97% | 39,244 |
7
|
ECOWAS | 283,096,250 | 215,999,071,943 | 255,784,634,128 | 18.42% | 904 |
15
|
EEA (EU + EFTA) | 499,620,521 | 14,924,076,504,592 | 17,186,876,431,709 | 15.16% | 34,400 |
30
|
EFTA-SACU | 68,199,991 | 1,021,509,931,918 | 1,139,385,636,888 | 11.54% | 16,707 |
9
4 EFTA members
5 SACU members |
EAEC | 207,033,990 | 1,125,634,333,117 | 1,465,256,182,498 | 30.17% | 7,077 | |
USMCA | 449,227,672 | 15,337,094,304,218 | 16,189,097,801,318 | 5.56% | 36,038 | |
TPP | 25,639,622 | 401,810,366,865 | 468,101,167,294 | 16.50% | 18,257 | |
SAARC | 1,567,187,373 | 1,162,684,650,544 | 1,428,392,756,312 | 22.85% | 911 | |
SPARTECA | 35,079,659 | 918,557,785,031 | 1,102,745,750,172 | 20.05% | 31,435 |
21
|
Pacific Alliance | 218,649,115 | 1,371,197,216,140 | 1,525,825,175,045 | 11.28% | 6,978 |
How Trade Blocs Compare
This table shows how different regional trade blocs work. It highlights if they have free trade, common markets, or even common currencies. It also shows if people can travel freely between member countries.
Activities | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
Regional bloc | Free Trade Area | Economic and monetary union | Free Travel | Political pact | Defence pact | Other | ||||
Customs union | Single market | Currency union | Visa-free | Border-less | ||||||
EU | in force | in force7 | in force2 | in force 1 | in force | in force (Schengen 1, 7, NPU and CTA 1) |
in force | in force (CFSP/ESDP 1) |
ESA 1, 7 | |
EFTA | in force | in force2, 7 | in force | in force 1, 7 | in force 1, 7 | ESA 1, 7 | ||||
CARICOM | in force | in force | in force 1 | in force 1 and proposed common |
in force 1 | proposed | proposed | NWFZ | ||
AU | ECOWAS | in force 1, 3 | in force 1 | proposed | in force 1 and proposed for 2012 1 and proposed common |
in force 1 | proposed | proposed | in force | NWFZ1 |
ECCAS | in force1 | African Continental Free Trade Agreement (AfCFTA)1 | in force1 | proposed | in force1 | in force | in force | NWFZ1 | ||
EAC | in force | in force | proposed for 2020s | proposed for 2024 | proposed | ? | proposed for 2023 | NWFZ1 | ||
SADC | in force1 | in force1 | proposed for 2015 | de facto in force 1 and proposed common for 2016 | proposed | NWFZ1 | ||||
COMESA | in force1 | proposed for 2010 | ? | proposed for 2018 | NWFZ1 | |||||
Common | in force1 | proposed for 2019 | proposed for 2023 | proposed for 2028 | proposed for 2028 | NWFZ1 | ||||
Pacific Alliance | in force | in force | NWFZ | |||||||
USAN | MERCOSUR | in force | in force | proposed for 2015 | in force | proposed for 2014 | NWFZ | |||
CAN | in force | in force 1 | proposed1 | in force | NWFZ | |||||
Common | proposed for 2014 4 | proposed for not after 2019 | proposed for 2019 | proposed for 2019 | in force | proposed for 2019 | proposed | in force | NWFZ | |
EEU | in force | in force1 | in force | Proposed | in force | in force 1 | ||||
AL | GCC | in force | in force | proposed | proposed 1 | in force | in force | |||
Common | in force1 | proposed for 2015 | proposed for 2020 | proposed | proposed | |||||
ASEAN | in force 5 | proposed for 2015 | proposed 8 | in force | proposed for 2015 | proposed for 2020 | NWFZ | |||
CAIS | in force1 | proposed | ? | in force1 | in force1 | proposed | NWFZ | |||
CEFTA | in force | RCC7 | ||||||||
USMCA | in force | in force 1, 7 | ||||||||
SAARC | in force 1, 6 | proposed | proposed | in force9 | ||||||
PIF | proposed for 20211 | NWFZ1 |
1 not all members participating
2 involving goods, services, telecommunications, transport (full liberalisation of railways from 2012), energy (full liberalisation from 2007)
3 telecommunications, transport and energy - proposed
4 sensitive goods to be covered from 2019
5 least developed members to join from 2012
6 least developed members to join from 2017
7 Additionally some non member states also participate (the European Union, EFTA have overlapping membership and various common initiatives regarding the European integration).
8 Additionally some non member states also participate (ASEAN Plus Three)
9 Limited to "entitled persons" and duration of one year.
See also
In Spanish: Bloque comercial para niños
- Regional integration
- Continental union
Lists of Trade Blocs
- List of preferential trade areas
- Lists of free trade agreements
- List of bilateral free trade agreements
- List of multilateral free trade agreements
- List of customs unions
- List of common markets
- List of economic unions
- List of monetary unions
- List of customs and monetary unions
- List of economic and monetary unions