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Customs Unions

A Level, IB
AQA, Edexcel, OCR, IB, Eduqas, WJEC

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 Southern African Customs Union (SACU) is a customs union between Botswana, Lesotho, Namibia, South Africa and Swaziland.

Kazakhstan, Belarus, Armenia, Kyrgyzstan make up a customs union with Russia –forming the Eurasian customs union system.

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