BILATERAL MULTILATERAL

COOPERATION AGREEMENTS
 TYPES OF AGREEMENTS

Bilateral Integration - FTAs

Regional Integration – NAFTA,
Global Integration - WTO
 TYPES OF REGIONAL TRADE AGREEMENTS

Free Trade Agreement (FTA) – abolish all tariffs

Customs Union - abolish all tariffs; common
external tariff on all imports from non members
Common Market - abolish all tariffs; common
external tariff on all imports from non members;
Factor mobility (e.g. Labour)
Economic and Political Union (EU) –
European Parliament, Common currency, abolition
of visa
 Types of Trade Zones

Export Promotion Zone (EPZ): Designated area;

No import / customs duty on import for exports
(SEEPZ, Kandla)
Export Oriented Unit (EOU)- Anywhere in the
country (Garware Wall Ropes, Pune)
Free Trade Zone (FTZ) – Can stock items for
export production (Bonded Ware house)
Deferment of duty.
Special Economic Zone (SEZ)- above plus other
facilities like labour law relaxation