Trading bloc

is a kind of international agreement is oft en part of a regional intergovernmental organization in which loc al trade barriers (tariffs and non-tariff barriers) are reduced o r eliminated in the agreement between the participating countries [1]. One of the first economic blocs was the German Customs Union, launched in 1834, formed the basis of the German Confederation, and then, from 1871, the German Empire. Increased intensity of the formation of trading blocs were evident in the 60s and 70