A common market is a kind of trade agreement in which members remove internal trade barriers, adopt common policies on relations with non-members and allow members to move their resources freely among themselves. Regional trade agreements refer to a treaty signed by two or more countries to promote the free movement of goods and services beyond the borders of its members. The agreement contains internal rules that Member States comply with each other. As far as third countries are concerned, there are external rules to which members comply. The way in which free trade agreements are designated may also be different. Most free trade agreements are designated by listing the participating countries and adding the term „FTA.“ For example, the Canada-Korea Free Trade Agreement. However, some free trade agreements are called under different names. For example, the Canada-EU free trade agreement is referred to as a comprehensive economic and trade agreement. Other countries call their trade agreements Economic Partnership Agreements (EPAs) or Global Economic Partnerships (CEPs). Other variants are also used.
Full integration of Member States is the last level of trade agreements. First, it is one of the names that are sometimes used for free trade agreements, to emphasize their preferential nature, in contrast to trade liberalization under the WTO or unilateral reduction of tariffs. Online Research Documents General documents relating to regional trade agreements carry the WT/REG document code. As part of the Doha Agenda trade negotiations mandate, they use TN/RL/O (additional values needed). These links open a new window: Allow a moment for the results to appear. Each free trade agreement is negotiated and agreed separately by the participating countries. A country may be a member of several free trade agreements. Preferential rules of origin are applied to prevent third countries from benefiting from preferential tariffs under a free trade agreement without presenting reciprocal benefits.
In principle, we can distinguish between unilateral trade agreements and systems (offered from one side to the other) and reciprocal trading systems (negotiated and approved by both parties). Regional trade agreements have the following advantages: the preferential trade agreement requires the least commitment to removing trade barriers Trade barriers are legal measures taken primarily to protect a country`s national economy. They generally reduce the amount of goods and services that can be imported. These barriers are put in place in the form of tariffs or taxes and, although Member States do not remove barriers between them. There are also no common trade barriers in preferential trade zones. A free trade agreement removes all barriers to trade among members, which means that they can freely move goods and services between them. When it comes to dealing with non-members, each member`s trade policies continue to come into force. All of the above agreements are free trade agreements, but for a variety of reasons, members prefer to name them under another name. In many cases, these names reflect the broader scope of agreements: many recent free trade agreements go beyond the scope of traditional trade agreements and cover areas such as public procurement, competition, intellectual property, sustainable development, labour and the environment, etc.