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There may be different kinds of integration process, with different degrees of depth
and agreements between the countries involved.
Customs Preference Agreement – assures preferential customs levels for the
group of countries that sign the agreement.
Free Trade Treaties (FTT) - eliminating customs and non-customs barriers on
trade between two or more countries.
Customs Union – provides for free trade between member countries, a common
free trade policy and consequently adopts a Common External Tariff (CET) – that is,
a single group of tariffs for imports from countries that do not belong to the bloc),
as well as standard customs codes, integrating the collection of the CET, common
phyto-sanitary policy. Examples: Mercosur, CAN
Common Market – it is an agreement in which a customs union is complemented
by eliminating all barriers against movements of production factors between the
member countries – not only goods and services circulate freely but also capital and
workers; integration of economic, productive, labour and social policies;
supranational and coordination of macroeconomic policies. An example is the
European Union.
Economic Union – An Economic Union is an agreement for economic integration in
which the members integrate all their economic policies. An example is the
European Union (the block managed to unify the currency and entire financial and
tax system, but so far it was unable to complete the approval process of a single
Constitution).
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Trade Agreements in the Americas
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