THE WORLD ECONOMY 2000

There are five levels of regional integration, the first of which is the formation of a free-trade area, and the second of which is the evolution of the free-trade area into a customs union. Beyond the customs union, the third level of integration is the common market. The common market, generally speaking, describes the pre-1992 level of integration in the European Community (EC). The fourth level of integration is economic union. This is the level of integration which was initiated in the EC on 1 January 1992. The fifth level of integration is political union. Political union describes the integration of the states in the United States. Political union is also the ultimate goal of the EC.

Each successive level of regional integration involves a greater degree of unified and common action. At the lowest level, the free-trade area, tariffs are eliminated on the trade between the member countries. At the next level, the customs union, common external tariffs are applied to all trade between the member countries and non member countries. The third level, the common market, moves one step further along, and p

. . .
ther regional integration schemes threaten to both dwarf and isolate the United States. The oldest and most successful of these other regional integrations is the EC. In the Western Hemisphere, the Andean Pact is the oldest comprehensive attempt at free trade. The Andean Pact is an agreement between a group of South American nations to develop regional economic integration. The Pact is modeled after the EC; however, neither its institutions nor its achievements toward regional economic integration have approached those of the EC in scope. For all of its promise, the Andean Pact in reality has not progressed appreciably beyond the level of a free-trade area, although it has developed some manifestations of the more advanced levels. A common external tariff has thus far eluded the Andean Pact, and, without this step, the Pact remains essentially a free-trade area. On the other side of the world in 1983, a trade agreement between Australia and New Zealand effectively established a common market of those two countries. The agreement between Australia and New Zealand involves two national economies which are quite small in international comparisons. Nevertheless, the agreement marked the beginning of free trade in Asia. Lastly,
. . .

Some common words found in the essay are:
United Political, Trade GATT, Washington Canadian, Trade Agreement, Andean Pact, North American, Finland Iceland, Australians United, EC Scandinavian, Asia Lastly, free trade, trade agreement, free trade agreement, ec membership, regional economic, economic integration, level integration, common market, andean pact, political union, regional economic integration, free trade negotiations, regional integration, asian free trade, canada-united free trade,
Approximate Word count = 1465
Approximate Pages = 6 (250 words per page)