Advocates of worldwide free trade are generally opposed to trading blocs, which they argue encourage regional trade as opposed to global free trade. Discuss.

A trading bloc is a group of countries within a geographical region that protect themselves from imports from non-members. A trade bloc is basically a free-trade zone, or near-free-trade zone, formed by one or more tax, tariff, and trade agreements between two or more countries. The various advocates of global free trade argue that regional trade is encouraged by trading blocs and is opposed to international trade and business. They are of view that trading blocs are likely to be disadvantageous to world trade and reduce the beneficial effects of specialization and the exploitation of comparative advantage among countries. Moreover, inefficient producers within the bloc may be protected from more efficient ones outside the bloc. On the other hand, the protagonists of regional trading blocs perceive the following points: At the regional level, there is a wider application of the comparative advantage within the bloc. Easier access to each other's markets means that trade between members is likely to increase. Producers can benefit from the application of scale economies, which will lead to lower costs and lower prices for consumers. Firms inside the bloc are protected from cheaper imports from outside, such as the protection of the EU shoe industry from cheap imports from China and Vietnam. Thus, in conclusion one can say their regional blocs are not in conflict with international trade. Both can coexist. There is no threat to international trade from EU, SAARC, NAFTA, ASEAN etc.