Home > Uncategorized > The differences between differing trading agreements

The differences between differing trading agreements

southampton-container-docks

These pieces are always a good excuse to insert a photo of one of those magnificent huge container ships that are very visable from the trains i frequently take to the New forest and beyond.But what exactly are the differences between a single market, customs union and a free trade area as well as other hybrid options? This article summarises well which I  have summarised below

  1. Free trade area. Is pretty well what it says on the tin. No taxes tariffs or quotas but member state laws can apply to certain goods. This is effectively the agreement (eventually) signed between the EU and Canada last week. You can understand why with exemptions in place, it took seven years and why it is also vulnerable to a particular party vetoing the same
  2. Single market. As above but with free movement of capital and services. This is effectively the current EU
  3. Customs union. This is where member states agree to the same tariffs for goods imported from outside the agreed union and then can be exported across that union without further tariffs
  4. Other options. This is perhaps where the most intruiging and developing example of Switerland fits in. They have a range of bilteral deals which give them access without full commitment. This is currently being tested by their policy over free movement

 

 

 

 

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