In a Customs Union, countries have free trade amongst themselves, as in an FTA, but they are no longer fully sovereign over trade policy. All members have most favoured nation status, which means that they are all treated equally.Įxamples include the North American Free Trade Area (NAFTA) between the USA, Canada and Mexico Asia Pacific Economic Cooperation (APEC) and the Common Market of Eastern and Southern Africa (COMESA). Sovereign countries belonging to a free trade area trade freely amongst themselves but have individual trade barriers with countries outside the free trade area. There are a number of types of trade blocs: Section 4.7 Balance of payments problems - in the news.Section 4.7 Balance of payments problems - questions.Section 4.7 Balance of payments problems - notes.Section 4.6 Exchange rates - simulations and activities.Section 4.6 Exchange rates - in the news.Section 4.5 Balance of payments - questions.Section 4.5 Balance of payments - notes.Section 4.4 World Trade Organisation (WTO) - notes.Section 4.3 Economic integration - in the news.Section 4.3 Economic integration - questions.Section 4.3 Economic integration - notes.Section 4.2 Free trade and protectionism - simulations and activities.
Section 4.2 Free trade and protectionism - in the news.Section 4.2 Free trade and protectionism - questions.Section 4.2 Free trade and protectionism - notes.Section 4.1 Reasons for trade - simulations and activities.Section 4.1 Reasons for trade - questions.Topic pack - International economics - introduction.