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Chapter 5

Trade Agreements

Bi-lateral and multi-lateral Free trade area

 between two or more countries  = multi-lateral free trade
agreement in one geographical
 eliminate quotas and tariffs area

 e.g. CER Australia/NZ  e.g. NAFTA

Customs union Single market

 = free trade area + a common  = customs union + common
external tariff. policies on product regulation
+ free movement of
 May use different import goods/services and labour

quotas.
 e.g. ECOWAS, EU
 e.g. MERCOSUR

Economic Union

 = single market + a common currency.
 e.g. Eurozone

Illustrations and further practice

Now try TYUs 1 to 5 from Chapter 5

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