aExport Promotion Council: the govt. has sponsored a no. of orgn which are specialized in a particular pdt or a grp of pdts & their main obj is to promote & strengthen exports of such pdt or grp of pdts. They are mainly concern with the problems with their export & implementation of export policy in this regard. The imp among them are the EPC’s & commodity board. With a view to securing active cooperation of growers, producers & exporters in the drive for export promotion, a no of export promotion council has been set up as a non-profit org’s under the Companies Act.All the exporters of pdts coming under the council are entitled to become the members of the council if they wish to claim export incentive & assistance provided by the council as per govt policy in force.
The govt provides grants under various heads of these councils. Members are charged an annual subscription fee for the service rendered by the council. The members of the council elect a working committee when it elects its chairman & other office bearer. All problems & policies relating to the exports of the pdts coming under the council are discussed by the working committee & the necessary action taken.The govt also appoints senior officials to act on working committee & guide its deliberations. (i) to assist exporter, (ii) export promotional activities, (iii) delegations of foreign countries, (iv) effective liaison, (v) presenting necessary data to the govt, (vi) foreign offices to help exporters. Thus, the EPC looks after the problems of exports in specific commodities & advice the govt, the local authorities & public bodies on the policies to be pursued and the steps to be taken to expand the export activities.Economic Integration: refers to trade unification between different states by the partial or full abolishing of customs tariffs on trade taking place within the borders of each state.
This is meant in turn to lead to lower prices for distributors and consumers (as no customs duties are paid within the integrated area) and the goal is to increase trade. The trade stimulation effects intended by means of economic integration are part of the contemporary economic Theory of the Second Best: where, in theory, the best option is free trade, with free competition and no trade barriers whatsoever.Free trade is treated as an idealistic option, and although realized within certain developed states, economic integration has been thought of as the “second best” option for global trade where barriers to full free trade exist. An increase of welfare has been recognized as a main objective of economic integration. The increase of trade between member states of economic unions is meant to lead to the increase of the GDP of its members, and hence, to better welfare – a goal of any state around the world.This is one of the reasons for the global scale development of economic integration, a phenomenon now realized in continental (ASEAN, the North American Free Trade Agreement (NAFTA), SACN, European Union (EU), Eurasian Economic Community (EurAsEC) and proposed for intercontinental (Comprehensive Economic Partnership for East Asia (CEPEA), Transatlantic Free Trade Area (TAFTA)) economic blocks.
The other objective for the states pursuing economic integration is to stay/become regionally and globally competitive, as the goods in the states outside economic blocks become more expensive (i. . , less competitive). This is the other reason making global economic integration inevitable.FORMS OF INTEGRATION: These differ in the degree of unification of economic policies, with the highest one being the political union of the states. (i) FTA (free trade area) : is formed when at least two states partially or fully abolish custom tariffs on their inner border. To exclude regional exploitation of zero tariffs within the FTA there is a rule of certificate of origin for the goods originating from the territory of a member state of an FTA. ii) Customs union: A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff.
The participant countries set up common external trade policy, but in some cases they use different import quotas. Common competition policy is also helpful to avoid competition deficiency. Purposes for establishing a customs union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries.It is the third stage of economic integration. Customs union is established through trade pact. In a customs union, all trade barriers between the member nations are removed like a free trade area.
But unlike a free trade area, the member nations of a customs union follow a common external trade policy with regards to the non member nations. For example, the Andean Pact, which came into existence in 1969 and currently consist of Bolivia, Colombia, Ecuador and Peru, could be treated as an example of customs union.The group has tried to remove all the intra trade barriers and has imposed a common tariff of 5 to 20 % on products imported from non member nations. (iii) Common Market: is a step ahead of customs union as far as integration of economies is concerned.
In a common market, all the trade barriers between member nations are removed; the member nations follow a common external trade policy with regards to the non member nations; and a free flow of factors of production – labour and capital, is allowed within the common market area.One of the successful examples of common market is the European Union. (i) Economic Union: An economic union is a type of trade bloc which is composed of a common market with a customs union. The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production (capital and labour) and a common external trade policy. Purposes for establishing a economic union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries.Economic union is established through trade pact. (ii) Political Union : A political union goes beyond the total economic integration of the member nations.
In it, all the economic policies of the member nations are unified or are in harmonization with each other under a single government , The EU is on the path of political union as it has come out with a European Parliament, the European Council, the Council of Minister, the European commission and the European Court of Justice