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:
“Change often makes accepted customs into crimes.”
—Mason Cooley (b. 1927)
“Let’s have the Union restored as it was, if we can; but if we can’t, I’m in favor of the Union as it wasn’t.”
—Artemus Ward (1834–1867)