What Is an Economic Union?

Economic Union means that in addition to the free flow of goods and production factors and the establishment of common external tariffs among member states, member states are also required to formulate and implement certain common economic and social policies, and abolish policy differences In order to make all aspects of the economy work in a unified and coordinated manner. ^[1]

Economic union

Right!

Economic Union means that in addition to the free flow of goods and production factors and the establishment of common external tariffs among member states, member states are also required to formulate and implement certain common economic and social policies, and abolish policy differences In order to make all aspects of the economy work in a unified and coordinated manner. ^[1]

The economic union goes one step further than the common market. It coordinates and even unifies monetary and fiscal policies among member states. ^[2]

1. On the basis of forming a common market, member countries will further coordinate their fiscal, monetary, and exchange rate policies.

2. When the coordination of exchange rate policies has reached such a degree that a currency commonly used by member states or a unified currency is established, this economic union is also called an economic and monetary union.

3. Not only did each member country surrender the right to establish a common market, but more importantly, the member country surrendered the right to use macroeconomic policies to interfere with the operation of its economy. In particular, its member countries have not only surrendered the right to intervene in the internal economy's fiscal and monetary policies and maintain internal balance, but have also surrendered the right to intervene in external economic and economic exchange rate policies to maintain external balance.

1.ASEAN

Association of Southeast Asian Nations. Established in Bangkok, Thailand on August 8, 1967. At the beginning of its establishment, members were Indonesia, Malaysia, the Philippines, Singapore and Thailand. Its purpose is to promote economic growth, social progress, cultural development, and peace and stability in the spirit of equality and cooperation. In January 1984, Brunei Darussalam was accepted. After the informal meeting in Manila on May 30, 1994, Vietnam, Laos, and Myanmar joined in successively. Cambodia became the first member of the 6th ASEAN Summit on December 15, 1998. 10 member states.

2. South Asian Regional Cooperation Alliance

In May 1980, Bangladesh initiated regional cooperation in South Asia. In August 1983, seven South Asian countries held their first foreign ministers' meeting in New Delhi. In December 1985, the Dhaka Declaration was adopted in Dhaka and the Charter of the South Asian Association for Regional Cooperation was signed. Announcing the official establishment. Its purpose: political consultation, eliminating differences, strengthening cooperation, and seeking development.

3. Gulf Cooperation Council

On May 25, 1981, the six heads of state of Kuwait, Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, and the Sultanate of Oman announced their establishment in the United Arab Emirates, with their headquarters in Riyadh, the capital of Saudi Arabia. Purpose: To achieve coordination and integration among member countries in various fields, which has reached unity; to promote military cooperation by strengthening economic cooperation, to safeguard their own interests and security, and to achieve stability, development and prosperity in the Gulf region.

4.Organization of the Islamic Conference

In March 1970, the first meeting of Islamic Ministers decided that it was formally established in May 1971 and is headquartered in Jeddah, Saudi Arabia. There are 46 member states. Every September 25th is the Islamic Conference Day.

5. CSCE

Organization for Security and Cooperation in Europe. 33 European countries and the United States and Canada participated in the meeting. It has three stages. Phase I: Held in Helsinki, Finland, in July 1973 to discuss conference procedures. The second stage: discussion of political, economic and human rights issues. Phase III: Held in Helsinki on July 30, 1975, signed the Helsinki Declaration. The fourth summit of the Conference on Security and Cooperation in Europe on December 5, 1994 decided to rename the CSCE as the Organization for Security and Cooperation in Europe from 1995. There are currently 52 member states and permanent establishments are located in Vienna.

6. Organization of American States

On April 14, 1890, 14 American countries established the "American Republic of America" at the first Conference of American States held in Washington. At the ninth session of the Americas Conference on April 30, 1948, the participating countries signed the Charter of the Organization of American States and renamed the alliance "OAS". Headquartered in Washington, it has more than 30 member states.

7.Contadora Group

On January 8, 1983, the leaders of Colombia, Mexico, Panama and Venezuela held a meeting in Contadora, Panama, focusing on the Central American form. The conference issued the "Condadora Group Statement". In 1987, the Contadora Group and Argentina, Brazil, Peru, and Uruguay held the first G-8 Summit.

8. OAU

Organization of African Unity. On May 22, 1963, heads of state, governments and representatives of 31 African countries held a meeting in Addis Ababa, the capital of Ethiopia. Adopted the Charter of the Organization of African Unity and announced its establishment. Headquartered in Addis Ababa. On July 8, 2002, the 38th OAU Summit opened in South Africa. Leaders from 52 member states discussed the completion of the OAU transition to the African Union. The African Union was formally established on July 9.

9.Arab Maghreb Union

North African Maghreb region inter-state coordination, consultation and cooperation agency. In 1988, the five heads of state of Algeria, Tunisia, Morocco, Libya and Mauritania met in Algiers to discuss the establishment of the Maghreb alliance. In February 1989, the five countries signed the "Arab Maghreb Treaty" and officially announced its establishment. Since 1994, Algeria has held the rotating presidency.

10.South Pacific Forum

Established in August 1971. Headquartered in Suva, the capital of Fiji. There are 15 member states.

11. Mutual Economic Assistance Committee

Referred to as "Economic Exchange". On January 25, 1949, leaders of the Soviet Union, Bulgaria, Hungary, Poland, Romania, and Czechoslovakia concluded an agreement on the "Economic Mutual Aid Committee" in Moscow. Azerbaijan and Germany joined in February and September of the same year. Later, Mongolia and Vietnam also became their members, and China, North Korea, Laos, and South Korea participated in relevant meetings as observers. Its purpose: The Soviet Union conducts extensive economic cooperation with member states to resist economic blockades and embargoes in western countries and accelerate the economic development of member states. After 1989, dramatic changes took place in Eastern Europe. At the 46th meeting of the mutual association on June 28, 1991, it was announced that it would be dissolved.

12.Western European Common Market

Also known as the "European Economic Community". Established on January 1, 1958, co-sponsored by France, West Germany, Italy, the Netherlands, Belgium and Luxembourg. In January 1973, Denmark, Ireland and the United Kingdom joined. Greece became the 10th member state on May 28, 1979. After 1986, Portugal, Spain, Sweden, Finland, and Austria joined successively, and developed to 15 member states. The organization has made many decisions on economic integration, achieved many effects, unified tariffs to the outside world, implemented free circulation of agricultural products, and established a currency union and free trade in industrial products within the Community. In December 1991, after the 46th European Union Summit, the European Community was moving towards a comprehensive economic and political alliance, becoming a powerful force in today's world economy.

13.European Free Trade Area

In July 1972, six European Union countries, Sweden, Switzerland, Austria, Portugal, Iceland, Liechtenstein and Finland, signed a gradual establishment of a free trade area. Norway joined in May 1973. With the expansion of the European Community, Greece and Spain participated in 1981 and 1986. At present, the GNP of the member countries of the organization accounts for 1/4 of the world's total output value, and the annual international trade volume accounts for more than 40% of the world trade volume.

14. The Seventh Economic Summit

Also known as the "G-7 Summit." It is a regular summit meeting held by the major western industrial powers of the United States, Britain, France, Germany, Italy, Japan, and Canada to coordinate their internal economic policies. In November 1975, in response to the economic crisis facing Western countries, the leaders of the seven nations met in Paris. In future sessions, economic issues will be the main topic. Since the 1980s, political and social issues have also become an important part of the conference. In 1993, Russia was also invited to attend the meeting. On June 20, 1997, the Summit of the Seven Western Countries was held in Denver, the United States. For the first time, Russian Head of State Yeltsin officially participated in the meeting and jointly issued a "Final Communiqué" under the name of the "G-8 Summit." The content of the conference is becoming increasingly global.

15.Benelux Economic Union

On February 3, 1958, Belgium, the Netherlands, and Luxembourg signed the "Benelux Economic Union Treaty" in The Hague. They decided to establish an economic union in which people, goods, capital and labor can circulate freely, implement free trade, coordinate finance, trade, Social and economic policies. Headquartered in Brussels, the capital of Belgium.

16.Andean Group

Full name "Annual Article Month Organization". It is a regional economic cooperation organization of the countries in the Andean region of South America. On May 26, 1969, it was officially launched by Bolivia, Colombia, Ecuador, Peru, and Chile. Headquartered in Lima, Peru. Venezuela joined in February 1973. Launched in October 1976 in Chile. Its purpose: to accelerate the economic development of member countries, maximize the use of resources in the region, formulate common foreign policies to enhance the ability to negotiate with large countries, and oppose foreign interference and political and economic pressure.

17.Latin American Integration Association

The predecessor was the Latin American Free Trade Association, which was established in 1960. On August 12, 1980, the Foreign Ministers of the 11 member states of the Association signed the Montevideo Treaty in Montevideo, the capital of Uruguay, and declared its establishment. Headquartered in Montevideo. Its purpose: to promote and coordinate trade among member countries, expand export markets and economic cooperation, achieve regional economic integration based on bilateral and multilateral cooperation, and ultimately establish a Latin American common market. There are 12 member states: Argentina, Bolivia, Brazil, Colombia, Chile, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela, Cuba, and China sends a permanent observer to the association.

18.Asia-Pacific Economic Cooperation

In January 1989, when Australian Prime Minister Hawke visited South Korea, he proposed to convene a ministerial meeting to discuss strengthening Asia-Pacific economic cooperation. After consultation with relevant countries, Australia, the United States, Canada, Japan, South Korea, New Zealand and 6 ASEAN countries held the first ministerial meeting of the Asia-Pacific Economic Cooperation Conference in the Australian capital Canberra from November 5 to 7, 1989, marking the Asia-Pacific Economic Cooperation Established. The Seoul Declaration, adopted at the Third Ministerial Conference of the APEC in Seoul in November 1991, formally established the mission and goals of the organization are: interdependence, mutual benefit, adherence to an open multilateral trading system and reduction of intraregional trade barrier. In June 1993, it was renamed the Asia-Pacific Economic Cooperation, referred to as APEC or APEC.