SECTION-C.GROUP-5.PRESENTATION

8/7/2019 SECTION-C.GROUP-5.PRESENTATION

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OPEC as a Regional Trading

Block: An Assessment

Presented by:- Group 5 (Section-C)Rupesh Kr. Singh BM010129

Vijay Kr. Sharma BM010164

Vineet Kr. Dubey BM010165

Vivek Pr. Singh BM010170


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REGIONAL TRADE BLOCKS

Regional trade blocks are intergovernmental

associations that manage and promote trade

activities for specific regions of the world

They have political as well as political implications for

example the European union , the worlds largest

trading block has harbored political ambitions. The

Maastricht treaty which gave birth to EU calls for

joint policies in regard to military , defense, and

citizenship


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MAJOR TRADE BLOCKS

EUROPEAN UNION (EU)

NORTH AMERICAN FREE TRADE AGREEMENT(NAFTA)

SINGAPORE AMERICAN FREE TRADEAGREEMENT(SAFTA)

ORGANISATION OF PETROLEUM EXPORTINGCOUNTRIES (OPEC)

ASSOCIATION OF SOUTH EAST ASIAN NATION

(ASEAN) SOUTH ASIAN ASSOCIATION OF REGIONAL CO-

OPERATION (SAARC)


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DEBATE ON TRADING BLOCKS

THERE ARE TWO VIEWS :

ANALYST LIKE PREEG ARGUE THAT TRADE BLOCS ARE

DESIRABLE BECAUSE THEY COMPLIMENT GLOBAL

TRADE.

OTHER ANALYST ARGUE THAT TRADE BLOCS ARE NOT

DESIRABLE BECAUSE THEY ARE THREAT TO FREE

TRADE AND NEED TO PROTECTIONISM


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WHY TRADE BLOCS ARE

DESIRABLE

TRADE BLOCS COMPLIMENT GLOBAL TRADE

THEY PROTECT INTRA REGIONAL TRADE FORMOUTSIDE FORCES.

THEY ESTABLISH REGIONAL SECURITY.


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WHY T. B. ARE UNDESIRABLE

IMPORT QUOTAS(LIMITING THE AMOUNT OFIMPORTS INTO THE COUNTRY SO THAT DOMESTICCONSUMERS BUY PRODUCTS MADE BY THEIRCOUNTRIES IN THEIR REGION).

CUSTOM DELAYS (ESTABLISHING BUREAUCRATICFORMALITIES THAT SLOW DOWN TRADE FROM THEOTHER REGION)

SUBSIDIES BARRIER (GIVING HEAVY SUBSIDIES TOPROTECT REGIONAL TRADE )

VOLUNTRY BOYCOTTS AND TECHNICAL BARRIERS.


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The Organization of the Petroleum

Exporting Countries (OPEC) History:

The Organization of the Petroleum Exporting Countries(OPEC) is a permanent, intergovernmental Organization,created at the Baghdad Conference on September 1014,1960.

Functions:

The OPEC MCs coordinate their oil production policies inorder to help stabilise the oil market and to help oil

producers achieve a reasonable rate of return on theirinvestments. This policy is also designed to ensure that oilconsumers continue to receive stable supplies of oil.


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CONTD.

OPEC FUND: The OPEC Fund for International Development is a

multilateral development finance institution. It was established in

January 1976, by the member countries of the Organization of the

Petroleum Exporting Countries.

The Organization of the Petroleum Exporting Countries (OPEC) is a

permanent, intergovernmental Organization, created at the Baghdad

Conference on September 10-14-1960, by Iran, Iraq, Kuwait, Saudi Arabia

and Venezuela.

The five Founding Members were later joined by nine other Members.

OPEC had its headquarters in Geneva, Switzerland, in the first five yearsof its existence. This was moved to Vienna, Austria, on September 1,

1965.


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OPECS OBJECTIVE

OPEC's objective is to co-ordinate and unify

petroleum policies among Member Countries, in

order to secure fair and stable prices for petroleum

producers; an efficient, economic and regular supplyof petroleum to consuming nations; and a fair return

on capital to those investing in the industry.


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History Of OPEC Over The Years

The 1960s: OPECs formation by five oil-producing developing

countries in Baghdad in September 1960 occurred at a time of

transition in the international economic and political

landscape, with extensive decolonization and the birth of

many new independent states in the developing world.

The 1970s: OPEC rose to international prominence during this

decade, as its Member Countries took control of their

domestic petroleum industries and acquired a major say in

the pricing of crude oil on world markets.


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CONTD.

The 1980s: After reaching record levels early in the decade,prices began to weaken, before crashing in 1986, responding to abig oil glut and consumer shift away from this hydrocarbon.

The 1990s: Prices moved less dramatically than in the 1970s and1980s, and timely OPEC action reduced the market impact ofMiddle East hostilities in 199091.

The 2000s: An innovative OPEC oil price band mechanism helped

strengthen and stabilize crude prices in the early years of thedecade.


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MEMBER COUNTRIES

The Organization of the Petroleum Exporting Countries (OPEC) was

founded in Baghdad, Iraq, with the signing of an agreement in September1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi

Arabia and Venezuela. They were to become the Founder Members of the

Organization.

These countries were later joined by Qatar (1961), Indonesia (1962),

Socialist Peoples Libyan Arab Jamahiriya (1962), the United Arab Emirates(1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) and

Angola (2007).

From December 1992 until October 2007, Ecuador suspended its

membership. Gabon terminated its membership in 1995. Indonesia

suspended its membership effective January 2009.Currently, the Organization has a total of 12 Member Countries: (Algeria ,

Angola , Ecuador , Iran , Iraq , Kuwait , Libya , Nigeria , Qatar , Saudi

Arabia , UAE , Venezuela, ).


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SECRETARIAT

The OPEC Secretariat is the executive organ of the Organization of the PetroleumExporting Countries (OPEC). Located in Vienna, it also functions as theHeadquarters of the Organization, in accordance with the provisions of the OPECStatute.

It is responsible for the implementation of all resolutions passed by theConference and carries out all decisions made by the Board of Governors. It alsoconducts research, the findings of which constitute key inputs in decision-making.

The Secretariat consists of the Secretary General, who is the Organizations Chief

Executive Officer, as well as such staff as may be required for the Organization

soperations. It further consists of the Office of the Secretary General, the LegalOffice, the Research Division and the Support Services Division.

The Research Division comprises Data Services, Petroleum Studies and EnergyStudies departments. The Support Services Division includes Public Relations &Information, Finance & Human Resources and Administration & IT Servicesdepartments.

The Secretariat was originally established in 1961 in Geneva, Switzerland. In April1965, the 8th (Extraordinary) OPEC Conference approved a Host Agreement withthe Government of Austria, effectively moving the Organizations headquarters tothe city of Vienna on September 1, 1965.
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SECRETARY GENERAL

The Secretary General is the legally authorized representative of theOrganization and Chief Executive of the Secretariat. In this capacity,he administers the affairs of the Organization in accordance withthe directions of the Board of Governors.

The Conference appoints the Secretary General for a period of

three years, which may be renewed once for the same period.This appointment takes place upon nomination by MemberCountries.

The Secretary General is assisted in the discharge of his dutiesby a team of officers and staff including two Directors

responsible for the Research Division and Support ServicesDivision, six Heads of Department, the General Legal Counsel,Head of the Office of the Secretary General and the InternalAuditor.


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THANK YOU

SECTION-C.GROUP-5.PRESENTATION

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