An agreement that involves two or more countries eliminating trade restrictions on most or all mutual trade,maintaining a common set of trade barriers against imports from non-member countries,and permitting mobility of capital and labour among member countries is called

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A common market involves the elimination of trade restrictions among member countries, but also includes the free movement of capital and labor. In addition, a common market also maintains a common set of trade barriers against non-member countries. This is different from a free trade area, which only eliminates trade barriers among member countries but allows them to maintain their own trade barriers against non-member countries. A customs union has common external trade barriers but does not necessarily allow for free movement of labor and capital among member countries. An economic and monetary union involves the adoption of a common currency and monetary policy, in addition to free trade and other economic integration measures. A political union would involve even deeper integration, including shared governance and decision-making processes.

An Agreement That Involves Two or More Countries Eliminating Trade