Provide a detailed, step-by-step mechanism for the reaction shown below. 
Definitions:
Participating Countries
Nations that are involved or engaged in an international event, project, agreement, or any collaborative effort.
Trade
The action of buying, selling, or exchanging goods and services between people, firms, or countries.
Single European Market
An integrated market across EU member states allowing for the free movement of goods, services, capital, and labour.
Free Trade
A policy approach where governments do not restrict or impose tariffs on imports and exports between countries, aiming to encourage international trade.
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