International Economic Communities
• Reduce trade barriers and promote regional economic cooperation.
• Free-trade area Members trade freely among selves without tariffs or trade restrictions.
• Customs union Establishes a uniform tariff structure for members’ trade with nonmembers.
• Common market Members bring all trade rules into agreement.
NAFTA (1994)
• World’s largest free-trade zone: United States, Canada, Mexico.
• Combined population: 435 million
• Total GDP: nearly $14 trillion
• U.S. and Canada are each other’s biggest trading partners.