Economic integration, a legal perspective on the creation of regional trading blocs

by Pedel, Anne

The focus of this thesis is on the economic integration of regional trading blocs fiom a legal perspective. The hypothesis of the thesis is that the Ievel of desired economic integration by the participathg member states has a direct relationship or bearing on the type of institutional structure created. If the desired level of economic integration is lower, like a fiee trade area, the likelihood is that the institutional structure will be facilitative and intergovenimental with a dispute settlement mechanism created in order to resolve disputes. IE; however?the desired Ievel of economic integration has moved beyond the fiee trade area to the desire to create either a custorns union or a common market, the institutions are more likely to be productive and possess supranational characteristics. In addition, it is increasùlgly likely that a legai system, with both legislative and judicial hctions, will be created to resolve. the disputes and dif5erences between the participahg member states of a proposed customs union or common market. The thesis wiU commence with a theoretical look at economic integration fiom both a political science and economic perspective, which will be used as a basis for postdating a legal theory of the economic intePtion of regional trading blocs. The experiences of the European Community, the European Econornic Area, the North Amencan Free Trade Area and the Common Market of the South (MERCOSUR) will be examined in the following chapters. The final chapter of the thesis attempts to draw together the experiences of the four regional trading blocs and then will put forward for discussion a preferred institutional structure for future regional trading blocs.