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European Free Trade Association (EFTA)
The most enduring free trade area in the world is European Free Trade Association (EFTA).
Established in January 1960, EFTA currently joins four countries –Norway, Iceland, Liechtenstein, and, Switzerland- down from seven in 1995 (three Three EFTA members Australia, Finland, Sweden joined the EU on January 1996.
EFTA was founded by those European countries that initially decided not to be part of European community. Original members included Australia, den mark, Finland and ,Sweden all of which are now members of the EU.
The emphasis of EFTA has been on free trade in industrial goods. Agriculture was left out of the arrangements, each member being allowed to determine its own level of support.
Members are also free to determine the level of protection applied to goods coming from outside EFTA.
CUSTOMS UNION:
The member countries of custom union have two basic features. They are
1.the member countries abolish all the restrictions & barriers on trade among themselves or charge low rates of tariffs and
2.they adopt a uniform commercial policy of barriers and restrictions jointly with regard to trade with non-member countries. Thus the custom union is advance in degree to free trade area.
COMMON MARKET:
Common market has three basic characteristics. They are:
1.All member countries abolish all the restrictions & barriers on trade among themselves or charge low rates of tariffs.
2.They adopt a uniform commercial policy of barriers & restrictions jointly with regard to trade with non-member countries, and
3.They allow free movement of human resources among the member countries. Thus, common market is superior to customs union.
ECONOMIC UNION:
Economic union has four basic characteristics. they are
1.They adopt a uniform commercial policy of barriers with regard to trade with non-member countries
2.All member countries abolish all restrictions on trade among themselves or charge low rates of tariffs.
3.They allow free movement of human resources and capital among themselves and
4.They achieve uniformity in monetary policy & fiscal policy among the member countries .
Thus the economic union is superior to common market.
In a nutshell, Economic Union >Common Market>Free Trade Area.
The most enduring free trade area in the world is European Free Trade Association (EFTA).
Established in January 1960, EFTA currently joins four countries –Norway, Iceland, Liechtenstein, and, Switzerland- down from seven in 1995 (three Three EFTA members Australia, Finland, Sweden joined the EU on January 1996.
EFTA was founded by those European countries that initially decided not to be part of European community. Original members included Australia, den mark, Finland and ,Sweden all of which are now members of the EU.
The emphasis of EFTA has been on free trade in industrial goods. Agriculture was left out of the arrangements, each member being allowed to determine its own level of support.
Members are also free to determine the level of protection applied to goods coming from outside EFTA.
CUSTOMS UNION:
The member countries of custom union have two basic features. They are
1.the member countries abolish all the restrictions & barriers on trade among themselves or charge low rates of tariffs and
2.they adopt a uniform commercial policy of barriers and restrictions jointly with regard to trade with non-member countries. Thus the custom union is advance in degree to free trade area.
COMMON MARKET:
Common market has three basic characteristics. They are:
1.All member countries abolish all the restrictions & barriers on trade among themselves or charge low rates of tariffs.
2.They adopt a uniform commercial policy of barriers & restrictions jointly with regard to trade with non-member countries, and
3.They allow free movement of human resources among the member countries. Thus, common market is superior to customs union.
ECONOMIC UNION:
Economic union has four basic characteristics. they are
1.They adopt a uniform commercial policy of barriers with regard to trade with non-member countries
2.All member countries abolish all restrictions on trade among themselves or charge low rates of tariffs.
3.They allow free movement of human resources and capital among themselves and
4.They achieve uniformity in monetary policy & fiscal policy among the member countries .
Thus the economic union is superior to common market.
In a nutshell, Economic Union >Common Market>Free Trade Area.