A confederal state is a political system where the central government has limited powers and the constituent states or regions retain the majority of political power. In a confederation, the central authority is created by a treaty or agreement among independent states that agree to cooperate on specific issues but maintain their sovereignty. ECOWAS (Economic Community of West African States) is a good example of a confederal state. It is a regional economic organization made up of independent countries that collaborate on economic, social, and political issues, but each member state retains its sovereignty.
Switzerland and the USA were confederal states at some point in their history but, this is no longer the case.
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