Trading Blocs

• A trading bloc is a group of countries that has removed/reduced trade restrictions between and among member states in order to facilitate trade.
• Examples of trade blocs are SADC, COMESA, ECOWAS, ACP countries, the Commonwealth of Nations and the African Union (AU).

Reasons for forming trading blocs.

• To reduce reliance on countries outside the bloc and thus encourage the bloc members to be independent.
• To promote trade among member states y reducing tariffs.
• To foster peace and friendship among member states.
• To assist each other economically in times of problems.
• To bargain powerfully as a group when negotiating for financial assistance or debt cancellation.
• To mobilise resources together and share ideas or technology as a group.

To access more topics go to the Commerce Notes page.