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Trade Definitions


Wed, 27 Feb 2008 02:36:00
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Preferential trade area

Where trade among countries is conducted on a preferential basis in conformity with agreed rules of origin with each country maintaining its own tariffs on goods imported from third countries.

 

Free trade area

Where tariff and non-tariff barriers are eliminated between members of the FTA, in conformity with agreed rules of origin, with each country maintaining its own tariff on goods imported from third countries.

 

Customs union

Where member countries operate a common external tariff and there is free movement of goods between member countries.

 

Common market

Where there is free movement of goods, labour and the right of residence and establishment between members of the common market.

 

Economic community

Where in addition to conditions prevailing in the common market, there is a single currency issued by one monetary and fiscal policies are in operation.





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