Meaning of Trade Association
A Trade Association refers to an organisation 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 organisations
- 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.
Chamber of commerce is not restricted to a particular line of trade; the members come together to have trade connections as well as to further their business interest.
Examples of Chambers of Commerce
- Abuja 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 organisation in the world. The main activities of ICC are: rule setting, dispute resolution, and policy advocacy.
ICC has unrivalled 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.