BA 3301 Lecture Notes - Lecture 72: North American Free Trade Agreement, Customs Union, Economic Union
Document Summary
In a free trade area all barriers to the trade of goods and services among member countries are removed, but memebers determine their own trade policies with regard to non-members. Examples of free trade areas include the closer economic relaions (aus & nz) and the north american free trade agreement (between the us, canada and mexico) The customs union is one step further along the road to full economic and poliical integraion. It eliminates trade barriers between member countries and adopts a common external trade policy. o. The andean community (bolivia, columbia, ecuador and peru) is an example of a customs union. The common market has no barrier to trade between member countries, a common external trade policy and the free movement of the factors of producion o. Mercosur (between brazil, argenina, paraguay and uruguay) is aiming for common market status.
