Asian trade blocs in world trading system: SAARC versus ASEAN

The economy of Asia comprises more than 4.2 billion people (60% of the world population) living in 46 different states. Six further states lie partly in Asia, but are considered to belong to another region economically and politically. Asia is the world's fastest growing economic region. Over the years trading blocs have played a major role in regulating the trend and pattern of international trade. Different regional blocks have come up in the period of economic liberalization in various parts of the world. ASEAN and SAARC are the two major trade blocs in Asian region. The Association of Southeast Asian Nations (ASEAN) is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. The South Asian Association for Regional Cooperation (SAARC) is an economic and political organization of eight countries in Southern Asia. In terms of population, its sphere of influence is the largest of any regional organization: almost 1.5 billion people, the combined population of its member states. It was established on December 8, 1985 by India, Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives and Bhutan. In April 2007, at the Association's 14th summit, Afghanistan became its eighth member. This paper attempts to compare two Asian regional groupings, the Association of South East Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC). The main objective of this project is to study the contribution of Asian Trade Blocs ASEAN and SAARC over World Trade. What is their contribution in terms of World's export and Import? Which trade Bloc is better than the other and what are the reasons for their respective successes and failures.