1435). In this way, countries which are signatories to GATT must abide by Article 24 which prevents (or tries to prevent) integration from harming third countries.
There are many examples of regional economic integration, but four examples can serve to illustrate the ways in which economic integration has been practiced. The European Community (EC) has succeeded in reducing tariffs and customs regulations among most of its members, and is seeking to establish a single currency for the region, although this latter idea is running into difficulty. The North American Free Trade Agreement (NAFTA), only recently ratified, eliminated many trade restrictions among Canada, the United States and Mexico, but has led to criticism from Latin America that the northern agreement will harm South American economies ("Rich North," 1994, p. 15). The Association of Southeast Asian Nations (ASEAN) is an example of small regional economies seeking to gain economic strength through integration. The Organization of Petroleum Exporting Countries (OPEC) represents not a geographic union, but an economic union focused on a single product. OPEC has used its economic influence to strategically manipulate the price of oil to its members' benefit.
The immediate benefit to participants in economically integrated blocs is the reduction in tariffs and other barriers to trade which may otherwise be present. Economic barriers to trade, such as tariffs and quotas, are the most obvious way in which economic integration can help nations expand their markets with geographically close nations (Pomfret, 1993, p. 1437). By reducing tariffs and fees, nations effectively reduce the cost of exporting goods, which means that goods produced in one nation can be purchased at a lower cost than if the trade agreement were not in place. This benefits each of the countries in the area by increasing the exports among the participating nations.
Noneconomic barriers to trade...