Customs Union

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:

    If someone were to put a proposition before men bidding them choose, after examination, the best customs in the world, each nation would certainly select its own.
    Herodotus (c. 484–424 B.C.)

    We hope the day will soon come when every girl will be a member of a great Union of Unmarried Women, pledged to refuse an offer of marriage from any man who is not an advocate of their emancipation.
    Tennessee Claflin (1846–1923)