The Andean Pact is a(n)________________.
A) political union
B) free trade area
C) customs union
D) economic union
E) common market

Question

Quizplus · Accepted Answer

The Andean Pact is a customs union, meaning that the member countries have established free trade among themselves, while maintaining a common external tariff on imports from non-member countries. This differs from a free trade area, in which members eliminate tariffs on trade among themselves, but each member maintains its own external tariffs. While the Andean Pact has established some common policies, such as on foreign investment and intellectual property rights, it does not constitute a full economic or political union.

The Andean Pact Is A(n)________________