Economic Integration

• Preferential trade agreement (PTA)


  A trading bloc where preferential access to certain products are given to member countries
• Trading bloc


  A group of countries who agree to liberalise trade with each other
• Free trade area / agreement (FTA)

  A trading bloc where free trade is allowed between member countries. Each member may impose their own trade barriers on non-members
• Customs union


  A trading bloc where free trade is allowed between member countries and have a common external tariff on non-members
• Common market


  A trading bloc that has all the characteristics of a customs union but also allows for free movement of goods, services, capital, and labour
• Monetary union


  A trading bloc that has all the characteristics of a common market but member countries also share a common currency