What Is The Difference Between A Free Trade Agreement And Regional Economic Integration
Member States of a Customs UnionA customs union is an agreement between two or more neighbouring countries for the removal of trade barriers, the abolition or abolition of tariffs and the abolition of quotas. These unions have been defined in the General Agreement on Tariffs and Trade (GATT) and are the third stage of economic integration. The Committee on Economic Relations and The Policy of Economic Union and the Policy of Economic Union and Eastern Europe during world War II, the anticolonialism of the United States was revived. President Franklin D. Roosevelt felt that imperial trading blocs and rivalry for control of the colonies had contributed to the Great Depression and world war. “The colonial system is war,” Roosevelt argued. “I cannot believe that we can wage a war against fascist slavery and, at the same time, we cannot work to free people from all over the world from a backward colonial policy.” In 2008, the GCC formed a common market that allowed the free movement of trade, investment and workers.P. K. Abdul Ghafour, “GCC Common Market Becomes a Reality,” Arab News, January 2, 2008, accessed April 30, 2011, archive.arabnews.com/?page=1§ion=0&article=105173&d=1&m=1&y=2008. In December 2009, Bahrain, Saudi Arabia, Kuwait and Qatar established a Monetary Council with the intention of finally creating a common currency. Mohsin Khan, “The GCC Monetary Union: Choice of Exchange Rate Regime,” Peterson Institute for International Economics, April 2009, called April 30, 2011 www.iie.com/publications/wp/wp09-1.pdf. Since its inception, the GCC has contributed not only to the expansion of trade, but also to the development of its countries and the well-being of its citizens, as well as to the promotion of peace and stability in the region. Nadim Kawach, “Unrest Will Not Affect GCC Monetary Union: Bahrain Central Bank Governor Says Union Remains Open for Other Members,” Emirates 24/7, March 12, 2011, accessed 30.
April 2011, www.emirates247.com/2.266/finance/unrest-will-not-affect-gcc-monetary-union-2011-03-12-1.366972. Perhaps the best example of economic and monetary union is that of the United States. Each U.S. state has its own government that establishes rules and laws for its own residents. However, each state transmits, to some extent, control of foreign policy, agricultural policy, social policy and monetary policy to the federal government. Goods, services, labour and capital can all flow freely, without restrictions between U.S. states, and the nation establishes a common trade policy. With regard to the concept of a free trade area, the General Agreement on Tariffs and Trade (GATT 1994) originally provided for the inclusion of only trade in goods.  An agreement with a similar purpose, namely the improvement of trade in services, is referred to as the “economic integration agreement” in Article V of the General Agreement on Trade in Services (GATS).  However, in practice, the term is often used to refer to agreements that do not only concern goods, but also services and even investments.