A customs union is 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 union is established through trade pact.
List of Customs Unions
Every Common market and Economic and monetary union has also a Customs Union
Proposed
Defunct
See also
References
