Customs Union (definition from Wikipedia)
A customs union is a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas. Common competition policy is also helpful to avoid competition deficiency. Purposes for establishing a customs union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries. It is the third stage of economic integration.
Customs union is established through trade pact.
European Union
In 1957, six European countries (Germany, France, Italy, Belgium, the Netherlands, and Luxembourg) formed the European Economic Community, which has grown and now includes most of Europe, and has been renamed the "European Union". The two major areas of importance for business are the effects on trade policy, and the effects on agricultural policy . For international trade, the effect was good in that it lowered tariffs between countries (creating a customs union). With respect to agriculture, the effects were not so good, in that the result was a massive export subsidy program (see common agricultural policy)
List of Customs Unions
Every Common market and Economic and monetary union has also a Customs Union
Proposed
Defunct
See Also
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