Regional economic organization (REO)

Definition

A regional economic organization is a group of countries in a specific geographic area that have formed an alliance to promote economic integration, trade, and investment among its members. These organizations aim to enhance regional economic cooperation and may also work on related political and social issues.

Related terms

Trade liberalization: The process of reducing barriers to trade, such as tariffs and quotas, between countries to facilitate easier exchange of goods and services.

Economic integration: The process by which different countries agree to remove trade barriers between them to create a larger market for goods, services, and capital.

Free trade area: A type of trade bloc where member countries have agreed to eliminate tariffs, quotas, and preferences on most (if not all) goods between them