A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade are reduced or eliminated among the participating states. Trade blocs can be stand-alone agreements between several states or part of a regional organization.

What are trading blocs examples?

The North American Free Trade Area (NAFTA) and the European Free Trade Association (EFTA) are examples of free trade areas. ... Economic Unions - An economic union is a type of trade bloc which is composed of a common market with a customs union.

What are trade blocs?

A trading bloc is another potential barrier to international trade. A trading bloc is a group of countries that work together to provide special deals for trading. This promotes trade between specific countries within the bloc. The European Union (EU) is an example of a trading bloc.