REGIONAL TRADING BLOCS AND ECONOMIC
INTEGRATION
From What is Regional Trade Blocs or Free Trade Agreements?
As trade integration across countries is intensifying, we hear more and more about
Free Trade Agreements (FTAs) and Regional Trade Blocs (RTBs). As their name
suggests these RTBs/FTAs are arrangements aimed for faster trade liberalisation
at regional levels.
Countries are convinced that trade is an engine of growth and they are searching
for arrangements that promote trade.
The WTO that contains 162 countries is the most popular one; a truly multilateral
forum for trade liberalisation. But the history of WTO led trade liberalisation shows
that the organisation is facing difficulty in bringing further trade liberalisation
because of conflicting interest among large number of countries.
This has led to interest in trade liberalisation within a limited number of countries
that may be regionally close together. These regional trade promoting
arrangements advocate more tariff cuts and removal of other restrictions within
the group while maintaining restrictions against the rest of the world.
Though many regional trade agreements like the EU, NAFTA and ASEAN were
established before or around the time of WTO’s formation, there is mushrooming of
RTBs in recent years. Recently formed Trans Pacific Partnership (TPP) shows this
increasing affinity towards RTBs. Many RTBs like the TPP would like to make
advanced level trade liberalisation and hence they are not satisfied with the slow
pace of trade liberalisation within the WTO.
What are Regional Trade Blocs (RTBs)?
Regional Trade Blocs or Regional Trade Agreements (or Free Trade Agreements)
are a type of regional intergovernmental arrangement, where the participating
countries agree to reduce or eliminate barriers to trade like tariffs and non-tariff
barriers. The RTBs are thus historically known for promoting trade within a
region by reducing or eliminating tariff among the member countries.
Over the last few decades, international trade liberalisations are taking place in a
serious manner through the formation of RTBs. They are getting wide attention
because of many important international developments. First, now the world is
trying hard to escape from the ongoing great recession phase. Second is the failure
of the WTO to take further liberalisation measures on the trade liberalisation front.
The EU, NAFTA, ASEAN, SAFTA etc are all examples for regional integration. The
triad of North America, Western Europe, and Asia Pacific have the most successful
trade blocs. Recently signed Trans Pacific Partnership is a powerful RTB. Similarly,
another one called RCEP is in negotiation round. India has signed an FTA with the
ASEAN in 2009. Simultaneously, the country has signed many bilateral FTAs.
Different types of RTBs
All regional trade blocs don’t have the same degree of trade liberalisation. They
may differ in terms of the extent of tariff cutting, coverage of goods and services,
treatment of cross border investment among them, agreement on movement of
labour etc.
The simple form of regional trade bloc is the Free Trade Area. The Free Trade Area
is a type of trade bloc, a designated group of countries that have agreed to
eliminate tariffs, quotas and preferences on most (if not all)goods and services
traded between them.
From the lowest to the highest, regional trade integration may vary from just tariff
reduction arrangement to adoption of a single currency. The most common type of
regional trade bloc is the free trade agreement where the members abolish tariffs
within the region. Following are the main types of regional economic integrations.
Classification of RTBs
Preferential trading union: Here, two or more countries form a trading club or a
union and reduce tariffs on imports of each other ie, when they exchange tariff
preferences and concessions.
Free trade union or association: Member countries abolish all tariffs within the
union, but maintain their individual tariffs against the rest of the world.
Customs union: countries abolish all tariffs within and adopt a common external
tariff against the rest of the world.
Common market: in addition to the customs union, unrestricted movement of all
factors of production including labour between the member countries. In the case of
European Common Market, once a visa is obtained one can get employed in France
or Germany or in any other member country with limited restrictions.
Economic union: The Economic Union is the highest form of economic co-operation.
In addition to the common market, there is common currency, common fiscal and
monetary policies and exchange rate policies etc. European Union is the example
for an Economic Union. Under the European Monetary Union, there is only one
currency- the Euro.
At present, out of the total regional trade arrangements FTAs are the most
common, accounting for nearly 90 per cent.
A trade bloc is a type of intergovernmental agreement, often part of a
regional intergovernmental organization, where barriers to trade(tariffs and others) are
reduced or eliminated among the participating states.
Trade blocs can be stand-alone agreements between several states (such as the North
American Free Trade Agreement) or part of a regional organization (such as the European
Union). Depending on the level of economic integration, trade blocs can be classified
as preferential trading areas, free-trade areas, customs unions, common markets, or economic
and monetary unions.[1]
Historic trading blocs include the Hanseatic League, a Northern European economic
alliance between the 12th and 17th centuries, and the German Customs Union, formed
on the basis of the German Confederation and subsequently the German Empire from
1871. Surges of trade bloc formation occurred in the 1960s and 1970s, as well as in
the 1990s after the collapse of Communism. By 1997, more than 50% of all world
commerce was conducted within regional trade blocs.[2] Economist Jeffrey J. Schott of
the Peterson Institute for International Economics notes that members of successful
trade blocs usually share four common traits: similar levels of per capita GNP,
geographic proximity, similar or compatible trading regimes, and political
commitment to regional organization.[3]
Many advocates of global free trade are opposed to trading blocs. Trade blocs are
seen by them to encourage regional free trade at the expense of global free
trade.[4] Those who advocate for it claim that global free trade is in the interest of
every country, as it would create more opportunities to turn local resources into
goods and services that are both currently in demand and will be in demand in the
future by consumers.[5] However, scholars and economists continue to debate
whether regional trade blocs fragment the global economy or encourage the
extension of the existing global multilateral trading system.[6][7]
AdvantagesEdit
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Competition: Trade blocs force the manufacturers in participating countries to compete with each
other. Increased competition creates pressures for greater efficiency within firms, which results in
lower prices for consumers. Home producers have to work with greater efficiency to ensure survival
of their goods against the low price imported goods since tariffs are removed. Overseas producers
tend to increase their production of goods as they realize that the low price goods that they produce
have a better chance of competing with home-produced goods in the market.
Economies of scale: The larger markets created by trade blocs permit companies to take advantage of
economies of scale. Since the average cost of each good produced tends to fall as production
increases, this results in lower prices for consumers.
Improved Market Efficiency: Increased competition and the removal of tariffs, which may act as
a price floor, drive down prices and allow for increased consumption. This reduces deadweight
loss and hence improves market efficiency.
Increased foreign direct investment: An increase in foreign direct investment may result from the
creation of trade blocs. This can benefit the economies of participating nations by creating jobs in new
or expanded businesses.
Trade Effects: Trade blocs eliminate tariffs, which drives down the cost of imports. As a result,
consumers can save money by buying imported goods when cheaper than locally produced ones—
they can then spend those savings on other goods. Reducing the cost of imports also reduces the cost
of locally produced goods that use imported parts or components.
DisadvantagesEdit
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Concessions: No country wants to let foreign firms gain domestic market share at the expense of
local companies without getting something in return. Any country that wants to join a trading bloc
must be prepared to make concessions. For example, in trading blocs that involve developed and
developing countries, such as bilateral agreements between the U.S. or the EU and relatively poor
Asian, Latin American or African countries, the latter may have to allow multinational corporations to
enter their home markets, hurting the business of some local firms.
Interdependence: Because trading blocs increase trade among participating countries, those countries
become increasingly dependent on each other. A disruption of trade within a trading bloc as a result of
a natural disaster, conflict or revolution may have severe consequences for the economies of all
participating countries.
Loss of Sovereignty: A trading bloc, particularly when it is coupled with a political goal, is likely to
lead to at least partial loss of sovereignty for its participants. For example, the European Union,
started as a trading bloc in 1957 by the Treaty of Rome, has transformed itself into a far-reaching
political organization that deals not only with trade matters, but also with human rights, consumer
protection, greenhouse gas emissions and other issues which are only marginally related.
Regionalism vs. Multinationalism: Trading blocs inherently favor their participating countries. For
example, among NAFTA partners, the United States, Canada and Mexico, trade has risen to more
than 80 percent of Mexican and Canadian trade and more than a third of U.S. trade, according to a
2009 report by the Council on Foreign Relations. However, regional economies establish tariffs and
quotas that protect intra-regional trade from outside forces, according to the University of
California Atlas of Global Inequality. Rather than pursuing a global trading regime within the World
Trade Organization, which includes the majority of the world's countries, regional trade bloc countries
contribute to regionalism rather than global integration.
Trading blocs
A regional trading bloc is a group of countries within a geographical region that
protect themselves from imports from non-members. Trading blocs are a form
ofeconomic integration, and increasingly shape the pattern of world trade. There are
several types of trading bloc:
Preferential Trade Area
Preferential Trade Areas (PTAs) exist when countries within a geographical region
agree to reduce or eliminate tariff barriers on selected goods imported from other
members of the area. This is often the first small step towards the creation of a
trading bloc.
Free Trade Area
Free Trade Areas (FTAs) are created when two or more countries in a region agree
to reduce or eliminate barriers to trade on all goods coming from other members.
Customs Union
A customs union involves the removal of tariff barriers between members, plus the
acceptance of a common (unified) external tariff against non-members. This means
that members may negotiate as a single bloc with 3rd parties, such as with other
trading blocs, or with the WTO.
Read more on customs unions.
Common Market
A ‘common market’ (or single market) is the first significant step towards full
economic integration, and occurs when member countries trade freely in all
economic resources – not just tangible goods. This means that all barriers to trade in
goods, services, capital, and labour are removed. In addition, as well as removing
tariffs, non-tariff barriers are also reduced and eliminated. For a common market to
be successful there must also be a significant level of harmonisation of microeconomic policies, and common rules regarding monopoly power and other anticompetitive practices. There may also be common policies affecting key industries,
such as the Common Agricultural Policy (CAP) and Common Fisheries Policy (CFP)
of the European Single Market (ESM).
Read more on: Single markets.
See: The EU
See: UK trade balance with the EU
The main advantages for
members of trading blocs
Free trade within the bloc
Knowing that they have free access to each other's markets, members are
encouraged to specialise. This means that, at the regional level, there is a wider
application of the principle of comparative advantage.
Market access and trade creation
Easier access to each other’s markets means that trade between members is likely
to increase. Trade creation exists when free trade enables high cost domestic
producers to be replaced by lower cost, and more efficient imports. Because low cost
imports lead to lower priced imports, there is a 'consumption effect', with increased
demand resulting from lower prices.
See: Trade creation and trade diversion
Economies of scale
Producers can benefit from the application of scale economies, which will lead to
lower costs and lower prices for consumers.
Jobs
Jobs may be created as a consequence of increased trade between member
economies.
Protection
Firms inside the bloc are protected from cheaper imports from outside, such as the
protection of the EU shoe industry from cheap imports from China and Vietnam.
The main disadvantages of
trading blocs
Loss of benefits
The benefits of free trade between countries in different blocs is lost.
Distortion of trade
Trading blocs are likely to distort world trade, and reduce the beneficial effects of
specialisation and the exploitation of comparative advantage.
Inefficiencies and trade diversion
Inefficient producers within the bloc can be protected from more efficient ones
outside the bloc. For example, inefficient European farmers may be protected from
low-cost imports from developing countries. Trade diversion arises when trade is
diverted away from efficient producers who are based outside the trading area.
See: Trade creation and trade diversion.
See: EU Sugar Case
Retaliation
The development of one regional trading bloc is likely to stimulate the development
of others. This can lead to trade disputes, such as those between the EU and
NAFTA, including the recent Boeing (US)/Airbus (EU) dispute. The EU and US have
a long history of trade disputes, including the dispute over US steel tariffs, which
were declared illegal by the WTO in 2005. In addition, there are the so-called beef
warswith the US applying £60m tariffs on EU beef in response to the EU’s ban on
US beef treated with hormones; and complaints to the WTO of each other’s
generous agricultural support.
During the 1970s many former UK colonies formed their own trading blocs in
reaction to the UK joining the European common market.
What is a Trading Bloc?
Trading blocs are usually groups of countries in specific regions that manage and promote
trade activities. Trading blocs lead to trade liberalisation (the freeing of trade from
protectionist measures) and trade creation between members, since they are treated
favourably in comparison to non-members.
The World Trade Organisation (WTO) permits the existence of trading blocs, provided that
they result in lower protection against outside countries than existed before the creation of
the trading bloc .
The most significant trading blocs currently are:
European Union (EU) – a customs union, a single market and now with a single currency
European Free Trade Area (EFTA)
North American Free Trade Agreement (NAFTA) between the USA, Canada and Mexico
Mercosur - a customs union between Brazil, Argentina, Uruguay, Paraguay and Venezuela
Association of Southeast Asian Nations (ASEAN) Free Trade Area (AFTA)
Common Market of Eastern and Southern Africa (COMESA)
South Asian Free Trade Area (SAFTA) created in 2006 with countries such as India and
Pakistan
Pacific Alliance – 2013 – a regional trade agreement between Chile, Colombia, Mexico and
Peru
Trading Blocs and Trade Creation
Trade creation is the movement from a higher cost source of output to a lower cost
source of supply as a result of joining a trade agreement.
Trade creation occurs when a country enters a free trade area / agreement or becomes
involved in a customs union in which there is free trade between members but also a common
external tariff.
Trading Blocs and Trade Diversion
Trade diversion is a switch from a lower-cost foreign source/supplier outside of a
customs union towards a higher-cost supplier located inside the customs union.
Trade diversion is a feature of a country deciding to join a customs union i.e. an area where
there is free trade within the customs union but also a common external tariff.
When a country joins a customs union it might initially be trading freely with a low cost
supplier in a 3rd party nation.
Once inside a customs union, the country must now adopt a common external tariff which
will then increase the cost of importing from the 3rd party nation.
These higher prices might affect consumers directly e.g. higher prices for food.
Or they might affect consumers indirectly because producers now have to pay more for their
imports from the 3rd party.
Trading blocs
A regional trading bloc is a group of countries within a geographical region that
protect themselves from imports from non-members. Trading blocs are a form
ofeconomic integration, and increasingly shape the pattern of world trade. There are
several types of trading bloc:
Preferential Trade Area
Preferential Trade Areas (PTAs) exist when countries within a geographical region
agree to reduce or eliminate tariff barriers on selected goods imported from other
members of the area. This is often the first small step towards the creation of a
trading bloc.
Free Trade Area
Free Trade Areas (FTAs) are created when two or more countries in a region agree
to reduce or eliminate barriers to trade on all goods coming from other members.
Customs Union
A customs union involves the removal of tariff barriers between members, plus the
acceptance of a common (unified) external tariff against non-members. This means
that members may negotiate as a single bloc with 3rd parties, such as with other
trading blocs, or with the WTO.
Read more on customs unions.
Common Market
A ‘common market’ (or single market) is the first significant step towards full
economic integration, and occurs when member countries trade freely in all
economic resources – not just tangible goods. This means that all barriers to trade in
goods, services, capital, and labour are removed. In addition, as well as removing
tariffs, non-tariff barriers are also reduced and eliminated. For a common market to
be successful there must also be a significant level of harmonisation of micro-
economic policies, and common rules regarding monopoly power and other anticompetitive practices. There may also be common policies affecting key industries,
such as the Common Agricultural Policy (CAP) and Common Fisheries Policy (CFP)
of the European Single Market (ESM).
Read more on: Single markets.
See: The EU
See: UK trade balance with the EU
The main advantages for
members of trading blocs
Free trade within the bloc
Knowing that they have free access to each other's markets, members are
encouraged to specialise. This means that, at the regional level, there is a wider
application of the principle of comparative advantage.
Market access and trade creation
Easier access to each other’s markets means that trade between members is likely
to increase. Trade creation exists when free trade enables high cost domestic
producers to be replaced by lower cost, and more efficient imports. Because low cost
imports lead to lower priced imports, there is a 'consumption effect', with increased
demand resulting from lower prices.
See: Trade creation and trade diversion
Economies of scale
Producers can benefit from the application of scale economies, which will lead to
lower costs and lower prices for consumers.
Jobs
Jobs may be created as a consequence of increased trade between member
economies.
Protection
Firms inside the bloc are protected from cheaper imports from outside, such as the
protection of the EU shoe industry from cheap imports from China and Vietnam.
The main disadvantages of
trading blocs
Loss of benefits
The benefits of free trade between countries in different blocs is lost.
Distortion of trade
Trading blocs are likely to distort world trade, and reduce the beneficial effects of
specialisation and the exploitation of comparative advantage.
Inefficiencies and trade diversion
Inefficient producers within the bloc can be protected from more efficient ones
outside the bloc. For example, inefficient European farmers may be protected from
low-cost imports from developing countries. Trade diversion arises when trade is
diverted away from efficient producers who are based outside the trading area.
See: Trade creation and trade diversion.
See: EU Sugar Case
Retaliation
The development of one regional trading bloc is likely to stimulate the development
of others. This can lead to trade disputes, such as those between the EU and
NAFTA, including the recent Boeing (US)/Airbus (EU) dispute. The EU and US have
a long history of trade disputes, including the dispute over US steel tariffs, which
were declared illegal by the WTO in 2005. In addition, there are the so-called beef
warswith the US applying £60m tariffs on EU beef in response to the EU’s ban on
US beef treated with hormones; and complaints to the WTO of each other’s
generous agricultural support.
During the 1970s many former UK colonies formed their own trading blocs in
reaction to the UK joining the European common market.
The ASEAN Free Trade Area (AFTA)
The ASEAN Free Trade Area (AFTA) has now been virtually established. ASEAN Member Countries
have made significant progress in the lowering of intra-regional tariffs through the Common Effective
Preferential Tariff (CEPT) Scheme for AFTA. More than 99 percent of the products in the CEPT
Inclusion List (IL) of ASEAN-6, comprising Brunei Darussalam, Indonesia, Malaysia, the Philippines,
Singapore and Thailand, have been brought down to the 0-5 percent tariff range. [Figure 1]
ASEAN’s newer members, namely Cambodia, Laos, Myanmar and Viet Nam, are not far behind in the
implementation of their CEPT commitments with almost 80 percent of their products having been
moved into their respective CEPT ILS. Of these items, about 66 percent already have tariffs within the
0-5 percent tariff band. Viet Nam has until 2006 to bring down tariff of products in the Inclusion List to
no more than 5 percent duties, Laos and Myanmar in 2008 and Cambodia in 2010.
Following the signing of the Protocol to Amend the CEPT-AFTA Agreement for the Elimination of
Import Duties on 30 January 2003, ASEAN-6 has committed to eliminate tariffs on 60 percent of their
products in the IL by the year 2003. As of this date, tariffs on 64.12 percent of the products in the IL of
ASEAN-6 have been eliminated. The average tariff for ASEAN-6 under the CEPT Scheme is now
down to 1.51 percent from 12.76 percent when the tariff cutting exercise started in 1993.
The implementation of the CEPT-AFTA Scheme was significantly boosted in January 2004 when
Malaysia announced its tariff reduction for completely built up (CBUs) and completely knocked down
(CKDs) automotive units to gradually meet its CEPT commitment one year earlier than schedule.
Malaysia has previously been allowed to defer the transfer of 218 tariff lines of CBUs and CKDs until
1 January 2005.
Products that remain out of the CEPT-AFTA Scheme are those in the Highly Sensitive List (i.e. rice)
and the General Exception List. The Coordinating Committee on the Implementation of the
CEPTScheme for AFTA (CCCA) is currently undertaking a review of all the General Exception Lists to
ensure that only those consistent with Article 9(b)1 of the CEPT Agreement are included in the lists.
ASEAN Member Countries have also resolved to work on the elimination of non-tariff barriers. A work
programme on the elimination of non-tariff barriers, which includes, among others, the process of
verification and cross-notification; updating the working definition of Non-Tariff Measures (NTMs)/NonTariff Barriers (NTBs) in ASEAN; the setting-up of a database on all NTMs maintained by Member
Countries; and the eventual elimination of unnecessary and unjustifiable non-tariff measures, is
currently being finalized.
In an effort to improve and strengthen the rules governing the implementation of the CEPT Scheme,
to make the Scheme more attractive to regional businessmen and prospective investors, the CEPT
Rules of Origin and its Operational Certification Procedures have been revised and implemented
since 1 January 2004. Among the features of the revised CEPT Rules of Origin and Operational
Certification Procedures include: (a) a standardized method of calculating local/ASEAN content; (b) a
set of principles for determining the cost of ASEAN origin and the guidelines for costing
methodologies; (c) treatment of locally-procured materials; and (d) improved verification process,
including on-site verification.
In order to promote greater utilization of the CEPTAFTA Scheme, substantial transformation has also
been adopted as an alternative rule in determining origin for CEPT products. The Task Force on the
CEPT Rules of Origin is currently working out substantial transformation rules for certain product
sectors, including wheat flour, iron and steel and the 11 priority integration sectors covered under the
Bali Concord II. Direction of Trade ASEAN’s exports had regained its upward trend in the two years
following the financial crisis of 1997- 1998 reaching its peak in 2000 when total exports was valued at
US$ 408 billion. After declining to US$ 366.8 billion in 2001, as a result of the economic slowdown in
the United States and Europe and the recession in Japan, ASEAN exports recovered in 2002 when it
was valued at US$ 380.2 billion. The upward trend for ASEAN-6 continued up to the first two quarters
of 2003. Intra-ASEAN trade for the first two quarters of 2003 registered an increase of 4.2 and 1.6
percent for exports and imports respectively. [Figures 2, 3 & 4]
Direction of Trade
ASEAN’s exports had regained its upward trend in the two years following the financial crisis of 19971998 reaching its peak in 2000 when total exports was valued US$ 408 billion. After declining to US$
366.8 billion in 2001, as a result of the economic slowdon in the United States and Europe and the
recession in Japan, ASEAN expots recovered in 2002 when it was valued at US$ 380.2 billion. The
upward trend for ASEAN-6 continued up to first two quaters of 2003. Intra-ASEAN trade for the first
two quarters of 2003 registered an increase of 4.2 and 1.6 percent for exports and imports
respectively. [Figures 2,3 & 4]
ASEAN Trade with Selected Trading Partners
The United States, the European Union and Japan continued to be ASEAN’s largest export markets.
Japan, followed by the U.S. and EU, were the largest sources of ASEAN imports. During the first half
of 2002-2003, ASEAN-6 trade with major markets as a whole increased by 11.71 percent for exports
and 6.91 percent for imports. However, ASEAN exports to the U.S. and India and imports from
Canada and India declined during the same period. [Figure 5]
The ASEAN Free Trade Area (AFTA)[1] is a trade bloc agreement by the Association of
Southeast Asian Nations supporting local trade and manufacturing in all ASEAN countries, and
facilitating economic integration with regional and international allies.[2][3][4] It stands as one of the
largest and most important free trade areas (FTA) in the world, and together with its network of
dialogue partners, drove some of the world's largest multilateral forums and blocs,
including Asia-Pacific Economic Cooperation, East Asia Summit and Regional Comprehensive
Economic Partnership.[5][6][7][8][9][10]
The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement
was originally signed, ASEAN had six members,
namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in
1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises the ten countries
of ASEAN. All the four latecomers were required to sign the AFTA agreement to join ASEAN, but
were given longer time frames in which to meet AFTA's tariff reduction obligations.
The primary goals of AFTA seek to:
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Increase ASEAN's competitive edge as a production base in the world market through the
elimination, within ASEAN, of tariffs and non-tariff barriers; and
Attract more foreign direct investment to ASEAN.
The primary mechanism for achieving such goals is the Common Effective Preferential Tariff
scheme, which established a phased schedule in 1992 with the goal to increase the region’s
competitive advantage as a production base geared for the world market.
Contents
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1History
2The Common Effective Preferential Tariff (CEPT) scheme
3Rule of Origin
4Administration
5Dispute resolution
6Further trade facilitation efforts
7Membership
8ASEAN Plus Three
9ASEAN–Australia–New Zealand Free Trade Area
10Related free trade areas
11References
History[edit]
This section needs
expansion. You can help
by adding to it. (June 2012)
The Common Effective Preferential Tariff (CEPT) scheme[edit]
Unlike the EU, AFTA does not apply a common external tariff on imported goods. Each ASEAN
member may impose tariffs on goods entering from outside ASEAN based on its national
schedules. However, for goods originating within ASEAN, ASEAN members are to apply a tariff
rate of 0-5 %(the more recent members of Cambodia, Laos, Myanmar and Vietnam, also known
as CMLV countries, were given additional time to implement the reduced tariff rates). This is
known as the Common Effective Preferential Tariff (CEPT) scheme.
ASEAN members have the option of excluding products from the CEPT in three cases: 1.)
Temporary exclusions; 2.) Sensitive agricultural products; 3.) General exceptions. Temporary
exclusions refer to products for which tariffs will ultimately be lowered to 0-5 %, but which are
being protected temporarily by a delay in tariff reductions.
For sensitive agricultural products include commodities such as rice, ASEAN members have until
2010 to reduce the tariff levels to 0-5 %.
General exceptions refer to products which an ASEAN member deems necessary for the
protection of national security, public morals, the protection of human, animal or plant life and
health, and protection of articles of artistic, historic, or archaeological value. ASEAN members
have agreed to enact zero tariff rates on virtually all imports by 2010 for the original signatories,
and 2015 for the CMLV countries.
Rule of Origin[edit]
The CEPT only applies to goods originating within ASEAN. The general rule is that local ASEAN
content must be at least 40% of the FOB value of the good. The local ASEAN content can be
cumulative, that is, the value of inputs from various ASEAN members can be combined to meet
the 40% requirement. The following formula is applied:
( Raw material cost
+ Direct labour cost
+ Direct overhead cost
+ Profit
+ Inland transport cost )
x 100 % FOB value
However, for certain products, special rules apply:
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Change in Chapter Rule for Wheat Flour;
Change of Tariff Sub-Heading for Wood-Based Products;
Change in Tariff Classification for Certain Aluminum and Articles
thereof.
The exporter must obtain a “Form D” certification from its national
government attesting that the good has met the 40% requirement. The
Form D must be presented to the customs authority of the importing
government to qualify for the CEPT rate. Difficulties have sometimes
arisen regarding the evidentiary proof to support the claim, as well as
how ASEAN national customs authorities can verify Form D
submissions. These difficulties arise because each ASEAN national
customs authority interprets and implements the Form D requirements
without much co-ordination.
Administration[edit]
Administration of AFTA is handled by the national customs and trade
authorities in each ASEAN member. The ASEAN Secretariat has
authority to monitor and ensure compliance with AFTA measures, but
has no legal authority to enforce compliance. This has led to
inconsistent rulings by ASEAN national authorities. The ASEAN Charter
is intended to bolster the ASEAN Secretariat's ability to ensure
consistent application of AFTA measures.
ASEAN national authorities have also been traditionally reluctant to
share or cede sovereignty to authorities from other ASEAN members
(although ASEAN trade ministries routinely make cross-border visits to
conduct on-site inspections in anti-dumping investigations). Unlike the
EU or NAFTA, joint teams to ensure compliance and investigate noncompliance have not been widely used. Instead, ASEAN national
authorities must rely on the review and analysis of other ASEAN
national authorities to determine if AFTA measures such as rule of
origin are being followed. Disagreements may result between the
national authorities. Again, the ASEAN Secretariat may help mediate a
dispute but has no legal authority to resolve it.
ASEAN has attempted to improve customs co-ordination through the
implementation of the ASEAN Single window project. The ASEAN
Single Window would allow importers to submit all information related to
the transaction to be entered electronically once. This information would
then be shared with all other ASEAN national customs authorities.
Dispute resolution[edit]
Although these ASEAN national customs and trade authorities coordinate among themselves, disputes can arise. The ASEAN Secretariat
has no legal authority to resolve such disputes, so disputes are resolved
bilaterally through informal means or through dispute resolution.
An ASEAN Protocol on Enhanced Dispute Settlement Mechanism
governs formal dispute resolution in AFTA and other aspects of ASEAN.
ASEAN members may seek mediation and good offices consultations. If
these efforts are ineffective, they may ask SEOM (Senior Economic
Officials Meetings) to establish panel of independent arbitrators to
review the dispute. Panel decisions can be appealed to an appellate
body formed by the ASEAN Economic Community Council.
The Protocol has almost never been invoked because of the role of
SEOM in the dispute resolution process. SEOM decisions require
consensus among all ASEAN members, and since both the aggrieved
party and the alleged transgressor are both participating in SEOM, such
consensus cannot be achieved. This discourages ASEAN members
from invoking the Protocol, and often they seek dispute resolution in
other fora such as the WTO or even the International Court of Justice.
This can also be frustrating for companies affected by an AFTA dispute,
as they have no rights to invoke dispute resolution yet their home
ASEAN government may not be willing to invoke the Protocol. The
ASEAN Secretary General has listed dispute resolution as requiring
necessary reform for proper administration of AFTA and the AEC.
Further trade facilitation efforts[edit]
Efforts to close the development gap and expand trade among
members of ASEAN are key points of policy discussion. According to a
2008 research brief published by the World Bank as part of its Trade
Costs and Facilitation Project,[11] ASEAN members have the potential to
reap significant benefits from investments in further trade facilitation
reform, due to the comprehensive tariff reform already realised through
the ASEAN Free Trade Agreement.
This new analysis suggests examining two key areas, among others:
port facilities and competitiveness in the Internet services sector.
Reform in these areas, the report states, could expand ASEAN trade by
up to 7.5% ($22 billion) and 5.7% ($17 billion), respectively. By contrast,
cutting applied tariffs in all ASEAN members to the regional average in
Southeast Asia would increase intra-regional trade by about 2% ($6.3
billion).[12]
Membership[edit]
Countries that agree to eliminate tariffs among themselves:
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







Brunei
Indonesia
Malaysia
Philippines
Singapore
Thailand
Myanmar
Cambodia
Laos
Vietnam
Regular Observers


Papua New Guinea
East Timor
The most recent ASEAN meeting was observed also by:







China
South Korea
Japan
India
Russia
Australia
New Zealand
ASEAN-Australia-New Zealand Free Trade Area
The agreement establishing the ASEAN-Australia- New Zealand Free Trade Area
(AANZFTA) entered into force in January 2010. The FTA is the most comprehensive
agreement covering a wide range of issues including trade in goods and services,
investment, intellectual property, competition as well as economic cooperation. Since
its inception, the AANZFTA has encouraged trade in goods and services by
removing barriers and reducing transaction costs for companies wanting to do
business in member countries. According to the agreement, 99 percent of the
Australia-New Zealand trade in goods with Indonesia, Malaysia, the Philippines, and
Vietnam will be duty-free by 2020. Upon full implementation in 2025, almost all trade
between the member countries will be free of tariff, helping businesses save millions
of dollars in tariff duties each year.
ASEAN-China Free Trade Area
Over the past decade, trade and investment between ASEAN member states and
China have expanded significantly under the ambit of the ASEAN China Free Trade
Area (ACFTA). The Agreement on Trade in Goods was signed in 2004 and
implemented in July 2005 by all the member countries. Under the agreement, the six
original ASEAN members and China decided to eliminate tariffs on 90 percent of
their products by 2010, while Cambodia, Lao PDR, Myanmar, and Vietnam –
commonly known as CLMV countries, had until 2015 to do so. Since the signing of
the agreement, China has consistently maintained its position as ASEAN’s largest
trading partner. In 2015, ASEAN’s total merchandise trade with China reached
US$346.5 billion, accounting for 15.2 percent of ASEAN’s total trade. Additionally,
ASEAN received US$8.2 billion in foreign direct investment (FDI) from China in
2015, placing China as ASEAN’s fourth largest source of FDI. By 2020, ASEAN and
China are committed to achieving a joint target of US$1 trillion in trade and US$150
billion in investment through ACFTA.
ASEAN-India Free Trade Area
The ASEAN-India Trade in Goods Agreement entered into force on January 1, 2010.
The signing of the agreement paved the way for the creation of one of the world’s
largest free trade area market, creating opportunities for over 1.9 billion people in
ASEAN and India with a combined GDP of US$4.8 trillion. AIFTA creates a more
liberal, facilitative market access, and investment regime among the member
countries. The agreement set tariff liberalization of over 90 percent of products
traded between the two dynamic regions. Accordingly, the tariffs on over 4,000
product lines were agreed to be eliminated by 2016, at the earliest.
RELATED: ASEAN-Hong Kong Free Trade Agreement Signed
ASEAN-Republic of Korea Free Trade Area
The ASEAN-Korea Trade in Goods Agreement was signed in 2006 and entered into
force in 2007. It sets out the preferential trade arrangement in goods among the
ASEAN Member States and South Korea, allowing 90 percent of the products being
traded between ASEAN and Korea to enjoy duty-free treatment. The Agreement
provides for progressive reduction and elimination of tariffs by each country on
almost all products. Under the Trade in Goods Agreement, ASEAN-6 including
Brunei Darussalam and Korea have eliminated more than 90 percent of tariffs by
January 2010.
ASEAN-Japan Comprehensive Economic Partnership (AJCEP)
The ASEAN–Japan Comprehensive Economic Partnership (AJCEP) came into force
in December 2008. The Agreement covers trade in goods, trade in services,
investment, and economic cooperation. The FTA provides for the elimination of
duties on 87 percent of all tariff lines and includes a dispute settlement mechanism.
It also allows for back-to-back shipment of goods between member countries, third
party invoicing of goods, and ASEAN cumulation. Both ASEAN and Japan have also
initiated several economic cooperation projects that include capacity building and
technical assistance in areas of mutual interest. These areas include intellectual
property rights, trade related procedures, information and communications
technology, human resources development, small and medium enterprises, tourism
and hospitality, transportation and logistics, among others.
This article is an excerpt from the November 2017 issue of
ASEAN Briefing magazine, titled “ASEAN’s FTAs and Opportunities
for Foreign Businesses” In this issue, we provide an introduction to
some of ASEAN’s FTAs and how foreign investors and exporters can
maximize opportunities in this dynamic region. We also discuss the
salient features of each FTA and the overall benefits they offer. We then
discuss the Rules of Origin criteria associated with each FTA that foreign
businesses need to be aware of. Finally, we analyze the growing
opportunities for investors looking to set up alternative production bases
within ASEAN.
About Us
ASEAN Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce
material for foreign investors throughout Asia, including China, India, Indonesia, Russia, the Silk
Road &Vietnam. For editorial matters please contact us here and for a complimentary subscription to
our products, please click here.
Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory
services throughout the ASEAN and Asia. We maintain offices in Singapore, as well as Hanoi & Ho
Chi Minh City, and maintain Alliance offices in Bangkok, Jakarta, Kuala Lumpur and Manila as well as
throughout China, South-East Asia, India and Russia. For assistance with ASEAN investments into
any
of
the
featured
countries,
please
contact
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at asean@dezshira.com or
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Dezan Shira & Associates Brochure
Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm,
providing legal, tax and operational advisory to international corporate investors.
Operational throughout China, ASEAN and India, our mission is to guide foreign
companies through Asia’s complex regulatory environment and assist them with all
aspects of establishing, maintaining and growing their business operations in the
region. This brochure provides an overview of the services and expertise Dezan
Shira & Associates can provide.
An Introduction to Doing Business in ASEAN 2017
An Introduction to Doing Business in ASEAN 2017 introduces the fundamentals of
investing in the 10-nation ASEAN bloc, concentrating on economics, trade, corporate
establishment, and taxation. We also include the latest development news for each
country, with the intent to provide an executive assessment of the varying
component parts of ASEAN, assessing each member state and providing the most
up-to-date economic and demographic data on each.
How to Set Up in the Philippines
In this issue of ASEAN Briefing magazine, we provide an introduction to the
Philippines as well as analyze the various market entry options available for
investors interested in expanding to the island nation. We also discuss the step-bystep process for setting up a business entity in the Philippines, highlighting the
various statutory requirements for overseas investors. Finally, we explore the
potential for Singapore to serve as a viable base to administer investors’ Philippine
operations.
Advantages[edit]
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Competition: Trade blocs force the manufacturers in participating countries to compete with
each other. Increased competition creates pressures for greater efficiency within firms, which
results in lower prices for consumers. Home producers have to work with greater efficiency
to ensure survival of their goods against the low price imported goods since tariffs are
removed. Overseas producers tend to increase their production of goods as they realize that
the low price goods that they produce have a better chance of competing with homeproduced goods in the market.
Economies of scale: The larger markets created by trade blocs permit companies to take
advantage of economies of scale. Since the average cost of each good produced tends to
fall as production increases, this results in lower prices for consumers.
Improved Market Efficiency: Increased competition and the removal of tariffs, which may
act as a price floor, drive down prices and allow for increased consumption. This
reduces deadweight loss and hence improves market efficiency.
Increased foreign direct investment: An increase in foreign direct investment may result
from the creation of trade blocs. This can benefit the economies of participating nations by
creating jobs in new or expanded businesses.
Trade Effects: Trade blocs eliminate tariffs, which drives down the cost of imports. As a
result, consumers can save money by buying imported goods when cheaper than locally
produced ones—they can then spend those savings on other goods. Reducing the cost of
imports also reduces the cost of locally produced goods that use imported parts or
components.
Disadvantages[edit]
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Concessions: No country wants to let foreign firms gain domestic market share at the
expense of local companies without getting something in return. Any country that wants to
join a trading bloc must be prepared to make concessions. For example, in trading blocs that
involve developed and developing countries, such as bilateral agreements between the U.S.
or the EU and relatively poor Asian, Latin American or African countries, the latter may have
to allow multinational corporations to enter their home markets, hurting the business of some
local firms.
Interdependence: Because trading blocs increase trade among participating countries,
those countries become increasingly dependent on each other. A disruption of trade within a
trading bloc as a result of a natural disaster, conflict or revolution may have severe
consequences for the economies of all participating countries.
Loss of Sovereignty: A trading bloc, particularly when it is coupled with a political goal, is
likely to lead to at least partial loss of sovereignty for its participants. For example, the
European Union, started as a trading bloc in 1957 by the Treaty of Rome, has transformed
itself into a far-reaching political organization that deals not only with trade matters, but also
with human rights, consumer protection, greenhouse gas emissions and other issues which
are only marginally related.
Regionalism vs. Multinationalism: Trading blocs inherently favor their participating
countries. For example, among NAFTA partners, the United States, Canada and Mexico,
trade has risen to more than 80 percent of Mexican and Canadian trade and more than a
third of U.S. trade, according to a 2009 report by the Council on Foreign Relations. However,
regional economies establish tariffs and quotas that protect intra-regional trade from outside
forces, according to the University of California Atlas of Global Inequality. Rather than
pursuing a global trading regime within the World Trade Organization, which includes the
majority of the world's countries, regional trade bloc countries contribute to regionalism rather
than global integration.

Trading blocs are a formal agreement between two or more regional countries that
remove trade barriers between the countries in the agreement while keeping trade barriers
for other countries.

Types of Trading Blocs

1. Free Trade Area

Two or more countries form a Free Trade Area in which trade barriers between the
countries are abolished but each country maintains its own tariffs against non-member
countries. For example the North American Free Trade Agreement (NAFTA) between
USA, Canada & Mexico created a free trade area.

2. Customs Union

A Customs Union is like a free trade area except that member countries maintain a
common tariff against non-member countries.

3. Common Market

A Common Market is like a customs union but there is free flow of factors of productions
between the countries. Ex: No permits are required to work in another member country.

4. Economic Union

A Economic Union has the same benefits as a common market but there is a common tax
system and employ the same currency. For example the European Union is an economic
union.

Examples of Trading Blocs

– North American Free Trade Agreement (NAFTA)
– European Economic Area (EEA)
– Union of South American Nations (Unasur/Unasul)

1. Trade Creation

Eliminations of trade barriers for member countries increases domestic production and
consumption. The more efficient producer produces, leading to less wastage of scarce
resources. This is trade creation.

2. Trade Diversion

When a trade bloc is formed, an external tariff maybe be applied to non-member
countries, making some goods that were initially cheaper, now more expensive. Thus, the
member country may start importing from other member countries since the price
becomes artificially cheaper than buying from the previous non-member country. This
leads to trade diversion.

Advantages of Trading Blocs

1. Size of Market

An increase in foreign direct investment results from trade blocs and benefits the
economies of participating nations. It increases local investments since the trading bloc
increases the overall size of markets for firms.

2. Technology

Open trade leads to faster transfer of technology across borders.

3. Economic Leverage

Increases economic leverage for the trading bloc as a whole. The larger markets created
via trading blocs permit economies of scale. The average cost of production is decreased
because mass production is allowed.

Disadvantages of Trading Blocs

1. Loss of Sovereignty

A trading bloc is likely to lead to at least partial loss of sovereignty for its participants.
For example, the European Union now not only deals not only with trade partnerships,
but also with human rights, consumer protection and greenhouse gas emissions.


2. Interdependence

Because trading blocs increase trade among participating countries, the countries become
increasingly dependent on each other.
What is a trading bloc?
There are a variety of ways in which countries can “protect” their domestic economies from
competition from abroad. One of them is through trading blocs.
A trading bloc is a type of intergovernmental agreement, often part of a regional
intergovernmental organisation, where regional barriers to international trade, (tariffs and nontariff barriers) are reduced or eliminated among the participating states, allowing them to trade
with each other as easily as possible.
The idea is that member countries freely trade with each other, but establish barriers to trade
with non-members, which has had a significant impact on the pattern of global trade.
International trade agreements can open up new opportunities for exporters. They can also
ensure access to competitively priced imports from other countries.
While the formation of trade blocs, such as the European Union and NAFTA (North American
Free Trade Agreement), has led to trade creation between members, by the same token it is
also harder for countries outside the bloc to trade, leading to what is called trade diversion,
where a company that otherwise might have got the business in that country is prevented from
doing so because of a trading bloc and the barriers in place for non-member countries.
Read Open to Export’s general introduction to how world works for further information.
What types of trading blocs are there?
Free Trade Area
Members agree to reduce or abolish trade barriers such as tariffs and quotas between
themselves. They maintain their own individual tariffs and quotas with respect to non-members.
Customs Union
Countries that belong to customs unions agree to reduce or abolish trade barriers between
themselves and agree to establish common tariffs and quotas with respect to outsiders.
Common Market
This is a customs union in which the members also agree to reduce restrictions on the movement
of factors of production – such as people and finance – as well as reducing barriers on the sale
of goods.
Economic Union
A common market which is taken further by agreeing to establish common economic policies on
such things as taxation and interest rates and, even, a common currency.
What are some relevant examples?
The best-known examples of trading blocs in Europe are:
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

EU – The European Union
This is the most important trade bloc in Europe. The EU combined is amongst the world’s
biggest exporters and around two thirds of EU countries’ total trade is done with other EU
countries
EFTA – European Free Trade Association with member countries Iceland, Liechtenstein,
Norway and Switzerland
EEA – The European Economic Area EU members plus the three EFTA states of
Iceland, Norway and Liechtenstein
CEFTA – The Central European Free Trade Agreement which covers Albania; Bosnia
and Herzegovina; Croatia; Former Yugoslav Republic of Macedonia; Moldova;
Montenegro; Serbia; UNMIK/Kosovo.
Other international trade blocs include:
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
NAFTA (the North American Free Trade Agreement) which covers Canada, the United
States of America and Mexico
MERCOSUR – Argentina, Brazil, Paraguay, Uruguay and Venezuela are full members,
Bolivia, Chile, Colombia, Ecuador and Peru have associate member status, with Bolivia
becoming an accessing member in December 2012.
How might a trading bloc affect me?
It depends where you’re exporting to. There is lots of information available online about the UK’s
FTAs, both within and outside the EU. Also, DIT is able to help British exporters overcome any
trade barriers, so you can always contact them for advice.
What Is A Trade Bloc, And
Why Are They Formed?
Trade blocs are formed to allow trade to occur between different
countries in a largely unrestrained fashion, similar to that occurring
within national borders.
Geopolitical map showing major contemporary trade blocs around the globe.
SHARE
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A trade bloc is a trade agreement among governments that are typically
within a shared geographical region. The agreement is entered into as a
means of protecting member nations from excessive imports of non-member
nations. To encourage trade among member states, tariffs, taxes, and other
trade barriers among them are often reduced or abolished. The most wellknown examples of major trade blocs seen around the world today include
the North American Free Trade Agreement (NAFTA), the Association of
Southeast Asian Nations (ASEAN), the European Union (EU), the Southern
Common Market (MERCOSUR), and the Southern African Development
Community (SADC).
History of Trade Blocs
The Hanseatic League of the late 12th Century was one of the earliest
documented trade blocs. It was implemented to protect the economic
interests and political privileges of North European merchant associations.
This trade bloc began to lose power in the late 16th Century due to increased
trading of English, Roman, Dutch, and Ottoman Empire merchants. Its last
formal meeting was in 1669 although it was not officially disbanded until
1871 with the creation of the German Empire. The existence of the German
Empire was made possible by the implementation of a new trade bloc, the
German Customs Union of 1834. The majority of the German states were
members by 1866. This strong trade agreement led to the founding of the
North German Confederation of 1867, which eventually became the German
Empire in 1871. Other trade blocs did become prominent again until after
World War II with the General Agreement on Tariffs and Trade (GATT) of
1948. This agreement originally had 23 member nations, and by 1994 it had
grown to include 123 members. The GATT became the World Trade
Organization in 1995. This trend toward trade blocs was seen in middleincome countries throughout the 1960’s, 1970’s, and after the fall of
communism in the 1990’s. By the end of the 20th Century, over half of the
world’s nations were members of some sort of a trade bloc agreement.
Advantages of Trade Blocs
Economists have identified 5 general advantages of establishing a trade bloc.
The benefits include competition, market efficiency, trade effects, economies
of scale, and foreign direct investment. Because trade blocs unite several
international markets, the manufacturers, producers, and other businesses
within member countries are also brought closer together. This puts them in
direct competition with one another, which ultimately leads to increased
efficiency as they each try to increase their profit margins. Because trade
blocs eliminate trade barriers, previously expensive or unavailable products
become available in new markets at affordable prices. This changes
consumer demand and behavior as most customers turn to the lowest priced
goods (known as trade effects). The manufacturers and businesses with the
lowest prices are made more successful and able to increase production,
resulting in market efficiency. As these economies become stronger, they
encourage foreign direct investment.
Disadvantages of Trade Blocs
Despite the inherent advantages of trade bloc agreements, they also have
several disadvantages. Many economists believe that regional trade blocs
prohibit global economic growth. This is because they promote regionalism,
undermining the objective of the World Trade Organization (WTO). The
majority of the world’s countries are members of the WTO. Additionally,
belonging to a trade bloc may effectively decrease a country’s political
autonomy. This is particularly true when the trade bloc expands to cover
issues like immigration, human rights, and environmental protection.
Another disadvantage of trade blocs is that small, local businesses are often
put out of business when larger, international corporations are able to
produce the same goods at lower costs.
House numbering
From Wikipedia, the free encyclopedia
Jump to navigationJump to search
A house number in Germany.
House numbering is the system of giving a unique number to each building in a street or area,
with the intention of making it easier to locate a particular building. The house number is often
part of a postal address. The term describes the number of any building (residential or not) with a
mailbox, or even a vacant lot.
House numbering schemes vary by location, and in many cases even within cities. In some
areas of the world, including many remote areas, houses are named but are not assigned
numbers.
Contents
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


1History
2Australia and New Zealand
3East Asia
4Southeast Asia
5West Asia
6Northern and Western Europe
o 6.1Finland
o 6.2Netherlands
o 6.3Portugal
o 6.4United Kingdom
o 6.5Marking of numbers
7Southern Europe
o 7.1Italy
o 7.2Turkey
8Central and Eastern Europe




o 8.1Austria
o 8.2Czech Republic and Slovakia
o 8.3Germany
o 8.4Former Soviet Union
9Latin America
10North America
11References
12External links
History[edit]
One of the earliest street numbering systems was introduced along Prescott Street in Goodman's Field,
London. John Rocque's Map of London, 1746.
A house numbering scheme was present in Pont Notre-Dame in Paris in 1512.[1] However, the
purpose of the numbering was generally to determine the distribution of property ownership in
the city, rather than for the purpose of organization.[citation needed]
In the 18th century the first street numbering schemes were applied across Europe, to aid in
administrative tasks and the provision of services such as Mail delivery. The New View of
London reported in 1708 that "at Prescott Street, Goodman's Fields, instead of signs, the houses
are distinguished by numbers".[2] Parts of the Paris suburbs were numbered in the 1720s; the
houses in the Jewish quarter in the city of Prague in the Austrian Empirewere numbered in the
same decade to aid the authorities in the conscription of the Jews.[citation needed]
Street numbering took off in the mid 18th century, especially in Prussia, where authorities were
ordered to "fix numbers on the houses ... in little villages on the day before the troops march in".
In the 1750s and 60s, street numbering on a large scale was applied in Madrid, London, Paris,
and Vienna, as well as many other cities across Europe.[3] On 1 March 1768, King Louis XV of
France decreed that all French houses outside of Paris affix house numbers, primarily for
tracking troops quartered in civilian homes.[4][5]
Australia and New Zealand[edit]
A RAPID number sign in New Zealand. The number 5 means that the property is between 40 to 60 metres
(130–200 ft) from the datum point of the road, and is on the left hand side of the road as viewed from the
datum point.
In Australia and New Zealand, the current standard (Australia/New Zealand joint standard
AS/NZS 4819:2011 – Rural & Urban Addressing)[6] is directed at local governments that have the
primary responsibility for addressing and road naming. The standard calls for lots and buildings
on newly created streets to be assigned odd numbers (on the left) and even numbers (on the
right) when facing in the direction of increasing numbers (the European system) reflecting
already common practice. It first came into force in 2003 under AS/NZS 4819:2003 – Geographic
Information – Rural & Urban Addressing.[7] Exceptions are where the road forms part of the
boundary between different council areas or cities. For example, Underwood Road in Rochedale
South, divided between Logan Cityand the City of Brisbane.
In New South Wales, the vast majority of streets were numbered before 2003, some with odd
numbers assigned to houses on the right of the street when facing the direction along which
numbers increase. There is no plan to reassign these numbers.
On some long urban roads (e.g. Parramatta Road in Sydney) numbers ascend until the road
crosses a council or suburb boundary, then start again at 1 or 2, where a street sign gives the
name of the relevant area – these streets have repeating numbers. In semi-rural and rural areas,
where houses and farms are widely spaced, a numbering system based on tens of metres or
(less commonly) metres has been devised. Thus a farm 2,300 metres (7,500 ft) from the start of
the road, on the right-hand side would be numbered 230.[8]
Ballarat Central, Victoria uses the US system of increasing house numbers by 100 after a major
cross street. Streets are designated North or South depending upon their relative position to Sturt
Street.
The number system will always start with No. 1 or No. 2 at the end that is closer to the
States' General Post Office.[citation needed]
East Asia[edit]
Main articles: Japanese addressing system and Addresses in South Korea
An example of the house numbering in rural area of Taiwan.
In Japan and South Korea, a city is divided into small numbered zones. The houses within each
zone are then labelled in the order in which they were constructed, or clockwise around the
block. This system is comparable to the system of sestieri (sixths) used in Venice. Visitors to a
large, complex city like Tokyo often must resort to asking for directions at a local police
substation.
In Hong Kong, a former British colony, the British and European norm to number houses on one
side of the street with odd numbers, and the other side with even numbers, is generally followed.
Some roads or streets along the coastline may however have numbering only on one side, even
if the opposite side is later reclaimed. These roads or streets include Ferry Street, Connaught
Road West, and Gloucester Road.[9]
Most mainland Chinese cities use the European system, with odd numbers on one side of the
road and even numbers on the opposite side. In high-density old Shanghai, a street number may
be either a hao ("号" hào) or nong ("弄" nòng/lòng), both of them being numbered successively.
A haorefers a door rather than a building, for example, if a building with the address 25 Wuming
Rd is followed by another building, which has three entrances opening to the street, the latter will
be numbered as three different hao, from 27 to 29 Wuming Rd.
A nong, sometimes translated as "lane", refers to a block of buildings. So if in the above example
the last building is followed by an enclosed compound, it will have the address "lane 31, Wuming
Rd". A nong is further subdivided in its own hao, which do not correlate with the hao of the street,
so the full address of an apartment within a compound may look like "Apartment 5005, no. 7,
lane 31, Wuming Rd".
Southeast Asia[edit]
The most common street address formats in Vietnam are:




A number followed by the street name, for example "123 đường Lê Lợi". This is the most
basic, most common format.
A number with an alphabetic suffix: "123A đường Lê Lợi", "123B đường Lê Lợi", etc. This
format occurs when a property is numbered 123 but later subdivided into two houses with
different addresses.
If the house lies on an alley, the alley number is combined with the house number: for
example, in "123/3 đường Lê Lợi", 123 is the alley's address, and 3 is the house number on
that alley.
More complex house numbers may occur on alleys that branch from other alleys or
properties on alleys are subdivided, for example "123/3E đường Lê Lợi" or "123/3/5B đường
Lê Lợi". An extreme example would be "7/14/12/3/23a đường 182", which is located on 3rd
alley off 12th alley off 14th alley off 7th alley off 182nd street.
Another scheme is based on residential areas called cư xá. A cư xá is addressed by house
number, road, and cư xá, for example "123 đường số 4 cư xá Bình Thới". Some localities still
use an older address format based on neighborhood (khu): for example, in "7A/34 Tô Hiến
Thành", 7A is the neighborhood number. This confusing format is being gradually phased out in
favor of the more modern formats above.
West Asia[edit]
Generally in Iran and especially in the capital Tehran odd numbers are all on one side and the
even numbers opposite along streets. Infrequently, this style confuses people because this is not
how it works everywhere in the city and sometimes the numbers get intertwined with each other.
In the rural parts, some houses have no number at all and some have their owner's details as the
number instead. In some cases, using the number 13 is skipped replacing it with equivalents
such as: 12+1 or 14-1
New digital house numbering in Tehran, Iran
Northern and Western Europe[edit]
European scheme
In Europe the most common house numbering scheme, in this article referred to as the
"European" scheme, is to number each plot on one side of the road with ascending odd
numbers, from 1, and those on the other with ascending even numbers, from 2 (or sometimes 0).
The odd numbers are usually on the left side of the road, looking in the direction in which the
numbers increase.
Where additional buildings are inserted or subdivided, these are often suffixed a, b, c, etc. (in
Spain, France and Afragola until 2001, bis, ter, quater, quinquies etc.). Where buildings are later
combined, they may use just one of the original numbers, combine them ("13/15"), or give their
address as a range (e.g. "13–17"; not to be construed as including the even numbers 14 and 16).
Buildings with multiple entrances may have a single number for the entire building or a separate
number for each entrance.
Where plots are not built upon gaps may be left in the numbering scheme or marked on maps for
the plots. If buildings are added to a stretch of old street the following may be used rather than a
long series of suffixes to the existing numbers: a new name for a new estate/block along the
street (e.g. 1–100 Waterloo Place/Platz, Sud St..); a new road name inserted along the course of
a street either with or without mention of the parent street; unused numbers above the highest
house number may be used (although rarely as this introduces confusing discontinuity), or the
upper remainder of the street is renumbered.
Other local numbering schemes are also in use for administrative or historic reasons, including
clockwise and anti-clockwise numbering, district-based numbering, distance-based numbering,
and double numbering.
Finland[edit]
The Finnish numbering system incorporates solutions to the problems which arose with mass
urbanization and increase in building density. Addresses always are formatted as street name
followed by street address number. With new, infill building, new addresses are created by
adding letters representing the new ground level access point within the old street address, and if
there are more apartments than ground level access points, a number added for the apartment
number within the new development. The original street numbering system followed the pattern
of odd numbers on one side and even numbers on the other side of the street, with lower
numbers towards the center of town and higher numbers further away from the center.
The infill numbering system avoids renumbering the entire street when developments are
modified. For example, Mannerheimintie 5 (a large mansion house on a large city plot) was
demolished and replaced with 4 new buildings each with 2 stairwells all accessible from
Mannerheimintie. The 8 new access stairwells are labelled A B C D E F G and H (each with the
letter visible above the stairwell). Each stairwell has 4 apartments on 5 floors, so the new
development has 160 new addresses in all running from Mannerheimintie 5 A 1 through to
Mannerheimintie 5 H 160. The opposite example is where old, narrow buildings have been
combined; Iso Roobertinkatu 36, 38 and 40 were demolished in the 1920s and the new building
has the address Iso Roobertinkatu 36–40.
In the rural parts of Finland, a variant of this method is used. As in towns, odd and even numbers
are on opposite sides of the road, but many numbers are skipped. Instead, the house number
indicates the distance in tens of metres from the start of the road. For example, "Pengertie 159"
would be 1590 metres from the place where Pengertie starts.
Netherlands[edit]
When more buildings are constructed than numbers were originally allotted, discontinuity of
numbering is avoided by giving multiple adjacent buildings the same number, with a letter suffix
starting at "A". In Haarlem, Netherlands, red numbers are used for upstairs apartments.
Portugal[edit]
In Portugal, the European scheme is most commonly used. However, in Porto and several other
cities in the Portuguese Northern region, as well as in the Cascais Municipality (near Lisbon),
houses are numbered in the North American style, with the number assigned being proportional
to the distance in meters from the baseline of the street.
Lisbon numbering is European and furthermore 'from the river, odd numbers left'. Because
the Tagus borders Lisbon on the south and the east, this means that north-south streets are
numbered low from the south, and east-west streets are numbered low from the east.
In many new planned neighborhoods of Portugal houses and other buildings are identified by
a lote (plot) number without reference to their street. This is in law the número de polícia, which
literally means police's number – the police formerly assigned the numbers rather than the town
hall. The lote is the construction plot number used in the urban plan, a consecutive number
series applies to a broad neighborhood. In theory and in most cases, the use of a lote number
system is provisional, being replaced by a traditional street number system some time after the
neighborhood is built and inhabited. In some neighborhoods, lote numbers are kept for many
years, some never being replaced by street numbers.
The relatively new planned neighborhood of Parque das Nações in Lisbon has also a different
numbering scheme: each building is referred by its plot, parcel, and building (in
Portuguese: lote, parcela, prédio[10]).
United Kingdom[edit]
Clockwise scheme. A similar, counter-clockwise scheme also remains in use in parts of Germany.
The European system is most widely used. The odd numbers will typically be on the left-hand
side as seen from the centre of the town or village, with the lowest numbers at the end of the
street closest to the town centre. Intermediate properties usually have a number suffixed A, B, C,
etc., much more rarely instead being given a half number, e.g. the old police station at
20 1⁄2 Camberwell Church Street. It is extremely rare for a property (built next to no. 2 after the
street had been numbered) to be zero (0) or named Minusone; researchers have found these
instances once in Middlesbrough and once in Newbury.[11] In many rural streets, significantly built
alongside before 1900, houses remain named (unnumbered).
In some places, particularly when open land, a river or a large church fronts one side, all plots on
one side of a street are numbered consecutively. Such a street if modern and long is more likely
to be numbered using odd numbers, starting at 1. Along oldest streets, numbering is usually
clockwise and consecutive: for example in Pall Mall, some new towns, and in many villages in
Wales. This usually also applies to all culs-de-sacs. For instance, 10 Downing Street, the official
home of the Prime Minister, is next door to 11 Downing Street. Houses which surround squares
are usually numbered consecutively clockwise.
In the early/mid 19th century numbering of long urban streets commonly changed (from
clockwise, strict consecutive to odds (consecutive) which face evens (consecutive)). Where this
took place it presents a street-long pitfall to researchers using historic street directories and other
records. A very rare variation may be seen where a high street (main street) continues from a
less commercial part – a road which breaks the UK conventions by not starting at 1 or 2. On one
side of the main road between Stratford and Leytonstone houses up to no. 122 are "Leytonstone
Road". The next house is "124 High Road, Leytonstone".
Developers may avoid the number 13 for house numbering as in Iran, because that number
is considered by some to be unlucky.[12]
Blocks of flats (apartments) are treated in two ways:


Flats numbered individually as part of the street. A lintel will typically be embossed or
metalled "1–24 Acacia Avenue" or "Flats 1–24 Acacia Avenue".
Flats numbered by building. The building retains its own number on the street e.g. "Flat 24, 1
Acacia Avenue" or increasingly as commonly: "Apartment 1-X, 1 Acacia Avenue" or by floor:
"Apartment 9D, 1 Acacia Avenue". Outside the number of flats is discreetly shown or not
revealed.
In the UK street numbering and street signposts vary across local authorities. Numbering plates
(or similar) are overwhelmingly at the discretion of house owners.
Marking of numbers[edit]
In the UK fanlights in front doors were introduced in the 1720s in which the house number may
be engraved.[13] Contemporary architecture and modern house building techniques see
alternatively acrylic, aluminium, or glass, ceramic, brass, slate, or stone used.
Southern Europe[edit]
Italy[edit]
Italy mostly follows the European scheme described above but there are some exceptions,
generally for historical reasons.
In Venice, houses are numbered within six named series (one per sestiere district). Similarly,
small villages in rural areas may also occasionally use a single progressive series for all house
numbers.[14]
In Genoa, Savona and Florence houses are marked with black (sometimes blue in Florence)
numbers; businesses are usually (but not always) given red numbers, giving up to two distinct,
numerically overlapping series per street. Those of businesses are denoted in all other writing
(documents, online directories, etc.) by the addition of the letter "r" (e.g. "Via dei Servi 21r").
Turkey[edit]
In most of Turkey, currently the European house numbering scheme is applied. The Istanbul
Metropolitan Municipality introduced new house numbering and street signs in 2007 by two
official designers.[15]
Central and Eastern Europe[edit]
In Central and Eastern Europe, with some exceptions, houses are typically numbered in the
European style. Many streets, however, use the "boustrophedon"
WHAT IS GLOBALIZATION? PROS
AND CONS OF GLOBALIZATION
Globalization refers to the aspect of international integration. It has no boundaries since it’s
about bringing together the whole world, either through technology, business, culture or
whatever one chooses to focus on. When writing a globalization essay, one can choose to
focus on any aspect of the concept termed as ‘globalization.’ They can either come up with a
general review as in a globalization essay or they can discuss the general implications to the
world in an extensive text.
The opening of agencies by governments that open up chances for their local citizens to
interact with members and citizens from yonder continents is the backbone of globalization.
However, the originality of globalization is founded on technological innovations and
advancement. The one major talking point that has evolved and stood around globalization is
the issue of employment. In some aspects, employment has been amplified by globalization
to an incredible extent, scaling to heights that no one ever thought would be achieved. In this
essay about globalization and employment, we will see how the integration of the whole
world into a synchronous system has impacted employment across the world.
The Concept of Globalization and
Employment
Globalization has played a central role in the business arena, more specifically targeting the
distribution of workforce. Born by early merchants and propagated diversely over the
vicissitudes of time, employment has developed new edges and facets thanks to globalization.
The history of it all can be traced back to the industrial revolution, where improvement of
technology and infrastructure enabled people to start working for massive production. Over
time, people traveled from different places in pursuit of employment and landed in these
industries and plantations. The trend grew over time, and before long, people were traversing
continents and oceans for the same. To date, there are numerous examples of employment
that has its roots in globalization. In this essay on globalization, we choose to focus on the
development of jobs owing to globalization and the negative impacts of this phenomenon as
well.
MAKE AN ORDER
Globalization Pros and Cons Essay
Globalization Has Had a Positive Outcome Regarding Employment
As with every other arising paradigm that affects the usual procession of the daily running of
lives on earth, globalization has brought with it many merits and demerits as well. The
creation of employment is an outstanding feature as viewed from the perspective of
globalization. In other words, technological innovation is the outcome of a worker
somewhere who has been at it for a while getting themselves out of the bed to make a living.
When sportspeople are contracted to compete for foreign countries, that aspect is in itself
under globalization as well.
Multinational companies provide the best example to highlight in a globalization essay. They
are companies that expand their operations beyond the territorial borders of their mother
country. They venture into new grounds and establish themselves there. In doing this, they
employ the locals and the natives in the satellite companies. This is one of the benefits of
globalization.
Other examples of employment that has resulted from globalization include:
1. Sourcing of foreign experts to assist in local ventures such as training and education
2. Invoking foreign investors to establish businesses in a country
3. Getting experts from developed countries to share and install infrastructure in developing
countries
4. A team of employees from different countries working on a contract with an agency
5. Trade deals between governments that see labor force exchange between the concerned
countries
The list can be extrapolated as the examples are many. All these are situations that have risen
up and brought about employment for people, and they all came up as a result of
globalization.
The Demerits of Globalization on Employment
As with the job creation, a globalization pros and cons essay should deal with the observation
of the harsh face of the concept in some situations. In as much as globalization is an excellent
idea, it has brought about agony and cost some people in different countries their rightful
place in their employment profile. People who ought to have standard and worthy jobs end up
doing odd jobs or lacking them altogether because of the effects of globalization.
The problems develop primarily out of the competition. For instance, a multinational
company that sprawls over to foreign countries will, for most of the time, be focusing on the
local natives to provide the primary forms of labor. The initial employees and those who feel
they had the right to get employed by the company over the new employees will then be
dejected. Competition for the limited slots of employment also comes into play, and the end
result is always cheaper labor for the employer but substantial wages for the employee.
Exchange programs as discussed in many globalization essays by some writers have proved
to be detrimental to the job security of citizens, especially in the developing countries. The
importation of expert workers into a nation puts the locals at risk of unemployment. This is
always definite. Many globalization pros and cons essays have been written to complement
similar books and agitate for fairness in such a system. It is difficult to manage a society
where the owners of the community itself are disgruntled, especially by matters relating to
economy and poverty.
MAKE AN ORDER
How the Situation Can Be Settled
The government has the obligation to serve and protect the citizenry, not just from physical
attacks but also from the artificial economic crisis. A globalization essay example will
highlight the fact that when foreigners are prioritized in the job industry over the citizens, a
financial crisis is always looming. This is a precarious situation for a nation. In order to avoid
it, the government can regulate the numbers of expatriates or check the employment status of
the population so that it strikes a balance between the two. To be safe, regulations made by
the government agencies should focus on protecting the jobs that should go to the citizens
first before going to expatriates.
Globalization is usually universal and unstoppable, but the demerits can be regulated and
checked. The problem is not one-sided as it may seem. There are instances where there is so
much exportation of the labor force and manpower that a country may have insufficiency.
This too can be avoided by similar checks.
Conclusion
Globalization has survived the test of time and has come out strong. Diversification of
employment, technology, economy, cultures, and many other things that cannot all be
captured in a short essay about globalization have come to the light of day, courtesy of
globalization. It is a great time to be alive and write a real-life globalization essay example as
witnessed first-hand.
The real challenge comes in when the merits brought about by globalization become a bone
for contention. Conflicts of interests are bound to arise and shake societies at such times.
Those are still additional tests to the progress that has been realized by globalization. But
there is always a way out. The adverse effects can be checked, and the harmony arrived at
without putting the social fabric in jeopardy. Globalization has more fruits than harm, and it
should be defended with all might.