Stages of economic integration include; The preferential Trade Area(PTA), Free Trade Area (FTA), Customs Union(CU), Common Market (CM), Economic Community or Monitory Union and Economic Union or Political Federation.
Countries engage in economic integration in order to eliminate barriers tointernational trade(Carbaugh,2009),facilitate payments and factor mobility within the the economic bloc.
Issues under consideration vary from stage of economic integration to another. In general however the Free Trade Area includes trade arrangements on preferential terms in accordance with the rules of origin. The Customs Unions involves mainly a common external tariffs, dispute settlement mechanisms, common external policy and common regional institutions. The Common Market includes free movement of factors of production and natural persons. A monitory union involves a common monetary (common currency) and fiscal policies between parties while under a political federation parties agree to implement uniform political institutions and policies between themselves. Political federation is the last of the Stages of economic integration. For details on Stages of economic integration, please visit.Stages of Economic Integration and African Experience