Economic regionalism has emerged as a reality in today's liberalized world. The origin of this phenomenon can be traced back to the past when initiatives wear taken to consititute the European Economic Community. The first wave of regionalism started when the Rome Treaty of 1957 come into existence for establishing the European Common Market (ECM). Since then,it is flourishing in almost every part of the world. The European Union (EU), North Atlantic Free Trade Area (NAFTA), Association of South East Asian Nations (ASEAN), South Asia Free Trade Agreement (SAFTA), MERCOSUR etc. are examples of the worldwide phenomenon of growing regional economic integration. Access to a larger market and diversifying production has been a long - standing rationale for regional arrangements particulary among developing countries. Even developed countries adopt regionalism in order to enhance their trade and consequently, their trade related benefits.