Trade Blocs: Wave of the Future?

[prog_expat]

(cross-posted on politicsforum)

I've recently become very interested in the topic of trade blocs, due to the continuing debate over NAFTA, news over the growth of the EU, and the process, currently underway, to merge Mercosur and the Andean Community (which is of interest to me as I recently moved to Argentina).

Comments

[rainonlevs]

If I understand this correctly, a trade bloc creates an area of free trade between certain countries, a zone where their national borders are ignored for purposes of business in certain ways. If this is accurate, I would say that the growth of these kinds of political and economic frameworks is a reflection of major driving factors in these nations, namely; The rise in power of multinational corporations and the use of governments by these corps to turn public resources into private assets.

Blocs like those set up by NAFTA exemplify this process, as can be seen by the effects of chapter eleven, that allows a private company or individual to sue public entities for adversely affecting their 'investments.' Government power is divested and deferred to the private needs of any foreign profit-maker.

As when unions had to be created to prevent horrific abuses by the powerful, I think trading blocs like Mercosur and the Andean Community have formed in order to create a power of unity to stand against current abuses.

[prog_expat]

If I understand this correctly, a trade bloc creates an area of free trade between certain countries, a zone where their national borders are ignored for purposes of business in certain ways.
Yes, although many go above and beyond just free trade areas

[rainonlevs]

So how would you compare the origins and effects of something like NAFTA to CAN and Mercosur?