Customs Union
A Customs Union is an agreement between a group of countries to eliminate tariffs and trade barriers among themselves while adopting a common external tariff for goods imported from outside the union. This means that member countries can trade more easily with each other, which can boost economic cooperation and efficiency. However, they also agree on how to handle imports from non-member countries, ensuring that external trade policies are aligned. This arrangement helps promote trade within the group while maintaining a unified stance against external trade issues.
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A customs union is an agreement between countries to allow free trade among themselves by eliminating tariffs and other trade barriers. Additionally, they adopt a common external tariff, meaning they charge the same tariffs on goods coming from outside the union. This arrangement simplifies trade between member countries and encourages economic collaboration while maintaining a cohesive trade policy towards non-member countries. Examples include the European Union’s customs policies and the Southern African Customs Union. The goal is to enhance economic efficiency, increase market access, and boost economic growth among participating nations.