Trading bloc

A region in which all member countries benefit from the same preferential or free trade agreements, thereby creating a regional economy.

As of 2008, the most important trading blocs included the European Union, NAFTA (North American Free Trade Agreement), MERCOSUR (Southern Common Markets), and ASEAN (Association of Southeast Asian Nations).

"Trade bloc activities have political as well as economic implications. […] Some analysts such as Preeg (1989) argue that trade blocs are desirable because they complement globalized trade. Others view regionalism as a threat to free trade because trade blocs advocate and install protectionist policies that shield bloc members from the effects of free trade (Schott 1989)."
(UC Atlas of Global Inequality, Regional trade blocs, visited 2008-09-20)