Free Trade Agreement Vs Common Market

Free trade agreements, which are free trade areas, are generally outside the scope of the multilateral trading system. However, WTO members must inform the secretariat when concluding new free trade agreements and, in principle, the texts of free trade agreements are subject to review by the Committee on Regional Trade Agreements. [8] Although a dispute that arises within free trade areas is not the subject of disputes before the WTO Dispute Settlement Body, « there is no guarantee that WTO groups will comply with it and refuse to exercise jurisdiction in a given case. » [9] The EU`s internal market is perhaps the most ambitious type of trade cooperation. Indeed, in addition to the abolition of customs duties, quotas or taxes on trade, this also implies the free movement of goods, services, capital and people. It therefore has selective access to the internal market and has agreed to participate in EU research and education programmes, as well as in EU asylum (Schengen) and asylum (Dublin) policies. Turkey is part of a customs union with the EU, but not in the internal market. The agreement does not cover food, agriculture, services or public procurement. To obtain these agreements, Switzerland must accept flat-rate offers from the EU, including legislative elements against which it has objected. So far, you`ve seen international organizations such as the WTO, the IMF, and the World Bank support global trade, but that`s only part of the story. Where world trade is actually stimulated, there are trade agreements (also called trade blocs).

This is where the term « global economic integration » takes its legs – from the process of changing barriers between and between nations in order to create a more integrated global economy. trade agreements differ in the amount of free trade they allow between members and non-members; each has a unique level of economic integration. We will look at four of them: the Regional Trade Agreement (RTA) (also known as the « free trade area »), customs unions, common markets and economic unions. But what is the difference between a free trade area, an internal market and a customs union? The EACM was created to create the « four freedoms » with the aim of stimulating the region`s economy and increasing productivity. The four freedoms are as follows: a single market is the economic concept of an internal market in which goods, services, capital and people can move freely, regardless of national borders. [Citation required] These `four freedoms` are implemented, inter alia, by abolishing customs duties on transfers of goods and services between Member States, imposing uniform product standards, revising legislation to allow `market-wide` financial services and restructuring most public procurement practices so as not to favour local businesses over businesses in other Member States. [Citation required] Common markets are similar to customs unions in that they remove internal barriers between members and introduce common external barriers against non-members. This difference lies in the fact that common markets also allow the free movement of resources (e.g. B work) between Member States.

An example of a common market is the Economic Community of West African States (ECOWAS), composed of Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Côte d`Ivoire, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. In addition to a common external law, an internal market also attempts to reduce the use of non-tariff barriers, such as different rules on product safety and environmental standards, which are replaced by a common set of rules governing trade in goods and services within the common market. . . .