Often times many misuse the word Trade Association
for A Chamber of Commerce but clearly there's a distinction between the both. Glide
through as we explain the disparities.
Meaning of Trade Association
A Trade Association refers to an organization that’s founded and funded by
businesses that operate in a specific industry. It is an association of traders
or producers who engage in the same line of business. The main aim of Trade
associations is to safeguard the interest of members and their businesses.
Aims and Objectives of Trade Association
To promote and protect members’ interests
To improve business environment for its industry
To encourage and assist the prosperity of the industry
To provide interfaces between the industry and other organizations
To act as a pressure groups in order to influence some government policies
To ensure fair play by members, and ensure they provide safe and quality
services
To act as an official channel of communication between the industry and the
Government
To also assist members who are in need.
To enable the industry to act as a unit, whether for co-operation with other
interests or industries or for dealing with subjects which concern their
section of industry as a whole.
To collect statistics and promote interchange of information between members.
Functions of Trade Association
They regulate and fix prices for their services or products
They put political pressure on government for the interest of their member
They draw up standard for the practice of their trade
They carry out research and publish the report for members use
They educate members on trade activities etc.
They ensure members are informed and can adapt to rapidly changing regulations,
technologies and standards.
They negotiate with other trade associations on collective basis.
They settle disputes among members
Chamber of Commerce
Chamber of commerce is an association of merchants, manufacturers and
businessmen from different commercial fields or different lines of businesses
who agree together in a town or city with the aim of representing and
protecting their business interest.
Examples
of Chambers of Commerce
- Abuja Chamber of Commerce and Industries
- Globe Chamber of Commerce and Industries
- Lagos chamber of commerce and Industries
- International chamber of commerce
- Nigerian – Indian Chamber of Commerce
- Nigerian – British chamber of commerce
Aims and objectives of chamber of
commerce
To further business interest of the covered area(s)
To promote commercial activities in a community, country or town
To influence the policy of the Government relating to commercial activities in
an area.
To liaise and relate with other chambers of commerce in relation to their
business interest.
To collect statistics and promote interchange of information between members
Functions of chamber of commerce.
To promote trade, commerce and industry.
To relevant advice to the government.
To collect and preserve data.
To arrange forums for exchanging views.
They Issue certificate of origin to exporters.
They arrange seminar, symposium and trade fair.
They train members, research and publish journals.
To promote home and foreign trade:
To educate members on Government legislations
They act as watchdogs in the administration of Government laws.
Differences between chamber of commerce and trade association
A trade association comprises members who engage in the same trade, while a
chamber of commerce comprises members from a particular region regardless of
their line of businesses.
Members of a trade association are primarily competitors, while in chamber of
commerce, members may be both competitors and non-competitors.
A trade association is concerned with the interest of businesses belonging to a
particular trade, while a chamber of commerce is concerned with the interest of
businesses in a particular region.
Trade association is named after the kind of trade it represents. Examples are:
National Fish & Frozen Food Dealers Workers Association of Nigeria; Association
of Senior Civil Servants of Nigeria. Chamber of commerce, however, is formed
and named after the area or region it represents. Examples are; Ibadan Chamber
of Commerce; Lagos Chamber of Commerce.
INTERNATIONAL CHAMBER OF COMMERCE (ICC)
The International Chamber of Commerce is the largest, most representative
business organization in the world. The main activities of ICC are: rule
setting, dispute resolution, and policy advocacy.
ICC has unrivaled authority in making rules that govern the conduct of
business across borders. Although these rules are voluntary, they are observed
in countless thousands of transactions every day and have become part of
international trade.
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