What is a Common Market?

A common market, also known as a trade block, is a market that allows trade and exchange of labor or services between specific countries. It is the result of a regional or intergovernmental agreement that permits agreeing countries to trade with one another with little or no barriers to trade. 

Common external tariffs (CET)s can  be imposed on non-members of the market who want to import into the market.

The European community is an example of a common market organized for countries or members of the European Union. Common markets are established to create free trade areas among its members, in this market exchange of capital, goods and services can be done with less barriers to trade.

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Academic Research on Common Market

• Product bias in the Central American common market, Schooler, R. D. (1965). Journal of marketing research, 394-397.
• The economics of the Common Market., Swann, D. (1970). The economics of the Common Market.
• Trade creation and trade diversion in the European Common Market, Balassa, B. (1967). The Economic Journal, 77(305), 1-21.
• The European common market and British industry, Liesner, H. H. (1958). The Economic Journal, 68(270), 302-316.
• Common market makers and commonality in liquidity, Coughenour, J. F., & Saad, M. M. (2004). Journal of Financial economics, 73(1), 37-69.
• A Latin American common market?, Dell, S. (1966). A Latin American common Market?.
• Common Contract Law for the Common Market, A, Basedow, J. (1996). Common Market L. Rev., 33, 1169.
• Trade creation and trade diversion in the European Common Market: An appraisal of the evidence, Balassa, B. (1974). The Manchester School, 42(2), 93-135.
• The Central American Common Market: from closed to open regionalism, Bulmer-Thomas, V. (1998). World Development, 26(2), 313-322.
• Regulation, the American Common Market and Public Choice, Kitch, E. W. (1982). Harv. JL & Pub. Pol'y, 6, 119.
• The challenge of the common market., Kitzinger, U. W. (1961). The challenge of the common market.
• The formation of the European Common Market and changes in market structure and performance, Sleuwaegen, L., & Yamawaki, H. (1988). European Economic Review, 32(7), 1451-1475.