It is generally agreed that completing the common market stage of integration for the European Union contributed to overall welfare losses that were due to trade diversion exceeding trade creation.

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The completion of the common market stage of integration for the European Union is generally considered to have contributed to overall welfare gains, not losses. This is because the integration facilitated trade creation, which outweighs the effects of trade diversion. Trade creation occurs when there is an increase in the total amount of goods traded due to the removal of barriers to trade within the union, leading to more efficient production and consumption. Trade diversion, where trade shifts from a more efficient external producer to a less efficient producer within the union, does occur but its negative effects are generally outweighed by the benefits of trade creation.

It Is Generally Agreed That Completing the Common Market Stage