WHAT ARE THE LEVELS OF
REGIONAL ECONOMIC INTEGRATION?
1. A free trade area eliminates all barriers to the trade of goods and services among
member countries
European Free Trade Association (EFTA) - Norway, Iceland, Liechtenstein, and Switzerland
North American Free Trade Agreement (NAFTA) - U.S., Canada, and Mexico
2. A customs union eliminates trade barriers between member countries and adopts a
common external trade policy
Andean Pact (Bolivia, Columbia, Ecuador and Peru)
3. A common market has no barriers to trade between member countries, a common
external trade policy, and the free movement of the factors of production
MERCOSUR (Brazil, Argentina, Paraguay, and Uruguay)