There are several levels of economic integration, each with varying degrees of complexity and commitment:
Free Trade Area: Member countries remove tariffs and trade barriers among themselves but maintain individual trade policies with non-member countries. Customs Union: Member countries not only remove internal trade barriers but also adopt a common external tariff policy towards non-member countries. Common Market: In addition to a customs union, member countries allow the free movement of labor and capital across their borders. Economic Union: This level involves integrating economic policies, including a common currency and harmonized tax and welfare policies. Political Union: The highest level of integration where member countries unify under a single political and economic framework.