Regional trade agreements (RTAs) are agreements between states. Member countries are located in the same geographic region, with the aim to increase economic integration and reduce barriers to trade. As the international community on the basis of these agreements will result in the increased movement of goods and services, people and capital between them. Regional trade agreements (RTAs) is defined as a reciprocal trade agreement between two or more partners. They include agreements on free trade and customs union .RTAs have become more prevalent since early 1990, on April 7, 2015.
In my point of view I think that the establishment the Regional trade agreements has several benefits to each members countries in Regional Trade Agreements. Firstly, RTAs that would be subject to tariff cuts on imports of goods and services from countries in Regional Trade Agreements, which from this event effect to reduces the cost per unit of production, When there is a reduction in production costs, making the company would increase its production. In view of production, due to increased competition in each country. It also increases production efficiency as well. Or may have foreign investment in Thailand increases. Then consumers have the option of increasing consumption. Thus reducing the power of monopoly in the country, Prevent a return to a policy of closing the country's underdeveloped countries. And not only that, Regional Trade Agreements increase economic and political stability of countries in the group. Small countries that together have the power to compromise increases in global stage as well. And the decrease in trade obstacle can allow countries greater enter to foreign markets. Secondly, When economic integration is causing the phenomenon was two type are Trade Creation and Trade Diversion, Trade Creation occurs when high cost domestic products are replaced by low cost imports from other members. I think trade creation is the positive result of integration economically, because it is trade between member States belonging to more groups. While Trade Diversion occurs when low cost imports from nonmembers are diverted to high cost imports from member nations. I think that it is disadvantageous for the country trade before the country joined the trade group, which later was traded before the first countries outside the region trade agreements. Thirdly, I also sees disadvantages of RTAs is that the country will lose tax revenue on the part of many, may have an unequal distribution of benefits among members. From different bargaining power. because each country's potential membership in the different areas. Whether a matter of resources, technology or labor, etc. And worse than that, RTAs have affect injustice and inequality. Creating power centers to countries with large trade powers are in control. While a small nation will be the loser. And there may not be enough personnel for complex negotiations.
And for the positive results in non-member countries is the country they closer to free trade in a world of more, there may be a larger export market Trade and Investment diversion. In turn It have resulted in a negative also, it is those countries are less interested in the WTO negotiations.They will create a new basis for the WTO by compression and increasingly complex trade relations as well as Regional Trade Agreements in the Member countries.
ข้อตกลงการค้าภูมิภาค (RTAs) ข้อตกลงระหว่างรัฐได้ ประเทศสมาชิกจะอยู่ในเขตภูมิศาสตร์เดียวกัน เพื่อเพิ่มการรวมกลุ่มทางเศรษฐกิจ และลดอุปสรรคทางการค้า เป็นประชาคมตามข้อตกลงเหล่านี้จะส่งผลให้การเคลื่อนที่เพิ่มขึ้นของสินค้า และบริการ บุคคล และเงินทุนระหว่างกัน มีกำหนดข้อตกลงการค้าภูมิภาค (RTAs) เป็นข้อตกลงการค้าซึ่งกันและกันระหว่างคู่สองคน หรือมากกว่า พวกเขารวมถึงข้อตกลงการค้าเสรีและสหภาพศุลกากร RTAs ได้กลายเป็นที่แพร่หลายมากขึ้นตั้งแต่ช่วงต้นปี 1990 บน 7 เมษายน 2015In my point of view I think that the establishment the Regional trade agreements has several benefits to each members countries in Regional Trade Agreements. Firstly, RTAs that would be subject to tariff cuts on imports of goods and services from countries in Regional Trade Agreements, which from this event effect to reduces the cost per unit of production, When there is a reduction in production costs, making the company would increase its production. In view of production, due to increased competition in each country. It also increases production efficiency as well. Or may have foreign investment in Thailand increases. Then consumers have the option of increasing consumption. Thus reducing the power of monopoly in the country, Prevent a return to a policy of closing the country's underdeveloped countries. And not only that, Regional Trade Agreements increase economic and political stability of countries in the group. Small countries that together have the power to compromise increases in global stage as well. And the decrease in trade obstacle can allow countries greater enter to foreign markets. Secondly, When economic integration is causing the phenomenon was two type are Trade Creation and Trade Diversion, Trade Creation occurs when high cost domestic products are replaced by low cost imports from other members. I think trade creation is the positive result of integration economically, because it is trade between member States belonging to more groups. While Trade Diversion occurs when low cost imports from nonmembers are diverted to high cost imports from member nations. I think that it is disadvantageous for the country trade before the country joined the trade group, which later was traded before the first countries outside the region trade agreements. Thirdly, I also sees disadvantages of RTAs is that the country will lose tax revenue on the part of many, may have an unequal distribution of benefits among members. From different bargaining power. because each country's potential membership in the different areas. Whether a matter of resources, technology or labor, etc. And worse than that, RTAs have affect injustice and inequality. Creating power centers to countries with large trade powers are in control. While a small nation will be the loser. And there may not be enough personnel for complex negotiations.And for the positive results in non-member countries is the country they closer to free trade in a world of more, there may be a larger export market Trade and Investment diversion. In turn It have resulted in a negative also, it is those countries are less interested in the WTO negotiations.They will create a new basis for the WTO by compression and increasingly complex trade relations as well as Regional Trade Agreements in the Member countries.
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