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Free-trade Area, Common market and Economic Union places regional trade agreements in an order moving from the least provisions to the most.
A free trade area is a collection of nations without a unified trade policy toward non-members but with typically eliminated tariffs and non-tariff trade barriers between its members. A legal agreement that creates a collection of nations that adopt a common external tariff is known as a common market. In a common market, nations also permit free commerce as well as the free movement of capital and labor inside the group. An economic union is an arrangement between two or more countries that permits unrestricted trade in commodities, services, money, and labor. An example of an economic union is the European Union.
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