100 years ago, much of the world was interlaced with military pacts and alliances that eventually led to the first global war. Now in 2016, many of these same nations are rushing towards new alliances and coalitions but under the name of trade and economics.
On the side of the U.S. are the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) which has garnered 12 countries in South America and the Pacific Rim, and is in the process of trying to coax EU states onto their ledger. And in Eurasia and the Far East, both Russia and China are creating free trade zones that do not require ‘secret’ and non-transparent pacts that are hidden from the citizens of nations, and in many cases, hidden even from most of the officials they want to bring on board.
Yet despite the power of U.S. hegemony, more and more country’s are choosing the Eastern trade pacts, with three new economies beginning talks with Russia to join their growing Eurasian Economic Union (EEU).
India hopes to begin consultations soon on creating a free trade zone with the Eurasian Economic Union, Indian Ambassador to Russia Pankaj Saran said.
“A Joint Study Group has been constituted to study the prospects of a Free Trade Area (FTA) between India and the Eurasian Economic Union. Presently, the study is underway and we look forward to the early conclusion of this study. Subsequently, we will study the report and thereafter enter into the actual negotiations for the Free Trade Area (Comprehensive Economic Cooperation Agreement) to start. India would like to be associated with the Eurasian Economic Union,” Saran told RIA Novosti in an interview. – Sputnik News
Vietnam became the first country to sign a free trade agreement with the EEU in May 2015.
“We expect that the removal of barriers will expand investment cooperation between Russia and the Asia-Pacific region and, above all, Vietnam,” Medvedev said. – Sputnik News
The Russia-led Eurasian Economic Union (EEU) is planning to hold talks with Israel on establishing a free trade zone. The agreement is likely to strengthen Tel Aviv’s economic ties with the union and improve Russia’s investment climate.
“There has been a decision to kick-off talks on the free trade zone with Israel,” said the director of the EEU’s Integration Development Department Victor Spassky.
The EEU is a Russia-led trade bloc established in 2015 on the basis of the Customs Union of Russia, Kazakhstan and Belarus. It currently has five members: Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, while Tajikistan is a prospective member.
Israel will be able to increase trade with the EEU by six to eight percent; Russia will see an increase in investment and technology transfer.
In October, Israeli Minister Zeev Elkin said Tel Aviv wants a free trade agreement with the EEU as soon as possible. According to him, the deal could be clinched within two years. – Russia Today
There are many distinct advantages that the EEU and Chinese backed ASEAN trade zones have over those being forged out of Washington. Besides the more obvious one where nations can soon trade directly with each other using their own currencies instead of having to buy dollars as a medium of exchange, joining with trade unions in the East will facilitate their being added to the new Silk Road project that will have similar economic effects to that of the 19th century when railroads became the economic catalyst for fledgling towns that would eventually grow into burgeoning cities.
The 20th century was about military alliances, which spawned not only World War I but also a Cold War that lasted throughout the duration of the century’s final 50 years. But the 21st century is shaping up to be about economic alliances with the U.S. desiring to keep financial hegemony over those nations that sign up with them, and where Russia and China are offering open free trade that models itself in the combined power of many, rather than with the power and dominion of just one.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.