Customs union: Difference between revisions
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imported>Doug Williamson (Differentiate from a free trade agreement and area.) |
imported>Doug Williamson (Add second definition.) |
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1. | |||
A customs union is an area in which: | A customs union is an area in which: | ||
#No cross-border tariffs apply between member states; and | #No cross-border tariffs apply between member states; and | ||
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In most free trade agreements, individual participating countries retain the right to set different tariffs on goods entering their individual countries. | In most free trade agreements, individual participating countries retain the right to set different tariffs on goods entering their individual countries. | ||
2. | |||
The 'Customs Union' is an abbreviation for the European Customs Union. | |||
Revision as of 20:46, 9 January 2018
1.
A customs union is an area in which:
- No cross-border tariffs apply between member states; and
- All member states must charge the same tariffs on goods entering their country from outside the customs union.
A customs union is a stronger form of a free trade agreement, because of the second of these conditions.
In most free trade agreements, individual participating countries retain the right to set different tariffs on goods entering their individual countries.
2.
The 'Customs Union' is an abbreviation for the European Customs Union.
