Structure of Regional Integration Agreements

Structure of Regional Integration Agreements

When the configuration of RIAs is taken into account, it is seen that the increasing number
of RIAs implies the networks of RIAs that include intra and inter continental members. It
is usually the case that one member of given RIA is also a member of another RIA. This   12
naturally results in overlapping RIAs and makes regional integration issue increasingly
more complex. The simplest form of RIAs is bilateral agreement that involves two member
countries. There are nearly 155 RIAs (covering goods and services) that are in force and
between two countries, recently. This number constitutes more than half of the RIAs that
are in force and notified to the WTO. The plurilateral agreements, on the other hand,
include more than two member countries. 

In the geographical context, while in most of the RIAs, member countries of the integration
are neighboring countries, some RIAs cover members  locating in different continents.
Examples of these inter continental RIAs include the US Israel FTA, Chile Japan FTA,
Peru China FTA. Although it does not fit into the above types of integration, the Asia
Pacific Economic Cooperation (APEC) that includes twenty one countries from four
continents. The more complex type of regional integration arises if one partner is itself an
RIA, like FTAs/CUs between the EU and several countries (Israel, Jordan, Mexico, Syria,
Turkey, etc.). EFTA and MERCOSUR are also involved  in such integration agreements.
Although EFTA SACU (2008) the only up to date example, it is expected that the trend
would let the emergence of several RIAs that involve the other RIAs as partners. For
example, the EU is negotiating the formation of FTA with MERCOSUR.

RIAs can also be classified according to the development levels of member countries as
North North, North South and South South agreements. In this kind of classification,
while “North” symbolizes developed countries, “South” symbolizes developing countries.
Hence, the first type of these agreements includes developed countries as members and its
subject area, that is its scope, tends to be more comprehensive than the other two
agreements. The European Community (EC) was the first example of such agreements.
The US Australia FTA that came into force in 2005 is, on the other hand, another example
of North North agreements. North South agreements,  like North American Free Trade
Area (NAFTA) and the Turkey EU customs union, include partnership of a developing
country(s) with a developed one(s). South South agreements, like Latin American Free
Trade Area (LAFTA) and Southern African CU (SACU), on the other hand, cover RIAs
that are established by developing countries. South South agreements are tend to be more
relax on the subject coverage and the degree of liberalization.