What are regional trading groups?

Regional trading groups are alliances of countries within a specific geographic area that aim to enhance economic cooperation and trade among their members. These groups often reduce or eliminate tariffs and other trade barriers, allowing for the free flow of goods, services, and investments. Examples include the European Union (EU), the North American Free Trade Agreement (NAFTA), and the Association of Southeast Asian Nations (ASEAN). Such agreements can strengthen economic ties, promote regional stability, and increase competitiveness in the global market.