Common Market(or Economic Integration Agreement) Beyond the reduction of tariffs and nontariff barriers, countries can enhance their cooperation in a variety of other ways. The EU also allows free mobility of production factors such as labor and capital. This means that labor, for example, is generally free to work in any country in the common market without restriction. Adding free mobility of production factors to a customs union results in a common market. In addition, the EU has harmonized its monetary policies through the creation of a common currency, complete with a central bank. This level of cooperation creates a degree of political integration among member countries, which means they lose a bit of their sovereignty. The EU is formally listed by the WTO as a customs union and economic integration agreement