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:
“Neighboring farmers and visitors at White Sulphur drove out occasionally to watch ‘those funny Scotchmen’ with amused superiority; when one member imported clubs from Scotland, they were held for three weeks by customs officials who could not believe that any game could be played with ‘such elongated blackjacks or implements of murder.’”
—For the State of West Virginia, U.S. public relief program (1935-1943)
“If the union of these States, and the liberties of this people, shall be lost, it is but little to any one man of fifty-two years of age, but a great deal to the thirty millions of people who inhabit these United States, and to their posterity in all coming time.”
—Abraham Lincoln (1809–1865)