Trading bloc and Free Trade Agreement

[Nialllovespie]

What's the difference between a trading bloc and a free trade agreement? I'm rather confused!!

Thanks in advance

Nia

[sudodds]

What's the difference between a trading bloc and a free trade agreement? I'm rather confused!!

Thanks in advance

Nia

Hey! Eco wasn't my best subject so take this with a grain of salt, but I believe the difference is that a trading bloc is where a group of nations make an agreement to relax/eliminate trade barriers with one another, while increasing trade barriers with non-member nations (promoting regionalisation rather than globalisation). An example of this is the EU (a big reason why Australia's trading patterns shifted away from Britain and towards Asia was due to the exclusionary trade barriers the EU set up), whereas a free-trade agreement is an agreement by two or more nations to eliminate trade barriers, but does not always involve a specific increase in trade barriers for other countries. Trading blocs often involve free trade agreements, but (I don't think) they have to to still be considered a trading bloc.

Pretty sure this is correct (if someone who knows more than me could check that'd be fab)

[Nialllovespie]

I understand what your talking about!! Thanks so much!! I really appreciate it!!