Topic Videos

Customs Unions

Level:
A-Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 7 Apr 2023

A short revision video on customs unions and how they differ from single markets.

Customs Unions

A customs union comprises a group of countries that agree to:

  1. Abolish tariffs and quotas between member nations to encourage free movement of goods and services.
  2. Adopt a common external tariff (CET) on imports from non-members countries.

Preferential tariff rates apply to preferential or free trade agreements that the European Union has entered into with third countries or groupings of third countries

The European Union (EU) is a customs union. The EU also has customs union agreements with Turkey, Andorra and San Marino

The average EU import tariff is 4.8 per cent. The EU common external tariff ranges from 0 per cent on pharmaceutical products and 11 per cent on footwear to as high as 45 per cent on tobacco.

  • The European Union (EU): The EU is the largest customs union in the world. It is made up of 27 member states, which have agreed to eliminate tariffs and other trade barriers between them. The EU also has a common external tariff, which applies to goods imported from outside the EU.
  • The Eurasian Economic Union (EAEU): The EAEU is a customs union between Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan. It was established in 2015 and is based on the same principles as the EU customs union.
  • The Southern African Customs Union (SACU): SACU is a customs union between Botswana, Lesotho, Namibia, South Africa, and Swaziland. It was established in 1910 and is the oldest customs union in the world.
  • The East African Community (EAC): The EAC is a customs union between Burundi, Kenya, Rwanda, Tanzania, and Uganda. It was established in 1967 and is focused on promoting trade and economic integration among its member states.
  • The Caribbean Community (CARICOM): CARICOM is a customs union between 15 Caribbean countries. It was established in 1973 and is focused on promoting trade and economic integration among its member states.
  • The Gulf Cooperation Council (GCC): The GCC is a customs union between Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. It was established in 1981 and is focused on promoting trade and economic integration among its member states.

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