in the global trade environment

Chapter 3 -- vocabulary

preferential trade agreement -- a mechanism that confers special treatment on select trading partners
free trade area (FTA) -- formed when two or more countries agree to eliminate tariffs and other barriers that restrict trade
free trade agreement -- the ultimate goal of which is the rare duties on goods that cross borders between the partners
rules of origin -- used to discourage the importation of goods into the member country
customs union -- represents the logical evolution of a free trade area
common external tariffs (CETs) -- When a goup of countries form a customs union they must introduce a common external tariff. The same customs duties, quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering. It is designed to end re-exportation
common market -- Where two or more countries agree to form a customs union between themselves and a common external tariff against goods and commodities imported from other countries
economic union -- builds upon the elimination of the internal tariff barriers, the establishment of common external barriers, and the free flow of factors. It seeks to coordinate harmonize economic and social policy within the union to facilitate the free flow of capital, labor, and goods and services from country to country