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.
