Regional Trading Arrangement: A Comparative Analysis of Indonesia and Pakistan

Regional Trading
Arrangement
Name
Institution

Scope of the Presentation
The presentation will focus on the following;
- Background information on Regional Trade
Agreements
- Literature review and analysis
- Comparison between Indonesia and Pakistan
- Conclusion
- Recommendations

Background Information
What is Regional Trade Agreement (RTA)?
- It is the reciprocal agreement on trade
between two or more parties (Rasiah & Thangiah,
2017)
- It covers sovereign states of geographical
proximity
- Aim: promoting economy and trade between
the members

Types of RTAs
There are several types of regional trade agreements.
They include;
- Free trade Area- trade among members
- Common markets- expands to the common external
commercial agreements and trade policies (Rasiah &
Thangiah, 2017)
- Custom agreements- promotes free factor mobility within
the common markers

Cont......
- Economic Community that focuses on
- Free trade among members, external commercial policies,
free factor mobility, and harmonized economic policy
- Economic Union- also covers the above in additional to
supranational organizational culture

Acceptance and Regional Distribution
Since adoption as a
principle of WTO, many
countries have increased
their partnership and trade
commitments
It covers high-, middle-,
and low- income countries
RTAs are vital features
adopted to promote
international trade
relations