A customs union is a type of trade bloc which is composed of 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 unions are established through trade pacts.
Read more about Customs Union: List of Customs Unions
Famous quotes containing the words customs and/or union:
“The customs of some savage nations might, perchance, be profitably imitated by us, for they at least go through the semblance of casting their slough annually; they have the idea of the thing, whether they have the reality or not.”
—Henry David Thoreau (1817–1862)
“We must choose. Be a child of the past with all its crudities and imperfections, its failures and defeats, or a child of the future, the future of symmetry and ultimate success.”
—Frances E. Willard 1839–1898, U.S. president of the Women’s Christian Temperance Union 1879-1891, author, activist. The Woman’s Magazine, pp. 137-40 (January 1887)