Zollunion

A Zollunion, or customs union, is an agreement between countries to eliminate internal borders for goods, allowing free trade within the union. They also adopt common external tariffs, meaning they charge the same import taxes on goods from outside the union. This simplifies trade, fosters economic cooperation, and reduces costs for businesses and consumers. For example, the German Zollunion in the 19th century unified many German states' customs policies, paving the way for economic integration and political unity. It promotes smoother commerce and strengthens ties among member countries by harmonizing trade policies.