JAY AN
Reasons for the promoting free trade is that no single economic power could fully control global trade and commerce.
International trading alliance
OPEC(organization of Petroleum Exporting)
- most earliest and most successful organization of Petroleum Exporting Countries
- established in 1960 by oil producing states (Arab and Muslim)
- tried to control the price of oil during Arab-Israeli war(quartered the price)
- brought down the world economy
- tried to control production, price, and abolition of all restrictions on free trade.
GATT(General Agreement on Tariffs and Trade)
- Unrestricted global trader made by U.S. politicians and business leaders
- removed barriers to free trade
- Changed to WTO( World Trade Organization)
- Trade between 1948-1966 grew by 6.6%
- 1966-1977 by 9.9%
- 1980-1990 almost doubled.
Regional trading alliance
ASEAN(association of southeast Asian Nations)
NAFTA(North America free trade agreement)
- Created in 1967 by foreign ministers of Thailand, Malaysia, Singapore, Indonesia, and Philippines
- To accelerate economic progress and political stability in Southeast Asia.
- It was conceived as a bulwark against spread of communism in the region.
- After cooperating with Japan(1977) and European community(1980), the economy focus of ASEAN came into sharper relief.
NAFTA(North America free trade agreement)
- Expand NAFTA to all non communist nations in America