Final dates! Join the tutor2u subject teams in London for a day of exam technique and revision at the cinema. Learn more


Common External Tariff

A common external tariff (CET) is a tariff, or tax, applied to imported goods by a group of countries that have formed a customs union. A customs union is a group of countries that have eliminated tariffs on trade among themselves and have agreed to apply the same tariffs to imported goods from countries outside the union. The purpose of a CET is to protect the member countries of the customs union from outside competition by making imported goods more expensive, while at the same time promoting trade among the member countries by eliminating tariffs on their trade.

The CET is typically set at a high enough level to protect the domestic industries of the member countries from outside competition, but low enough to allow for some trade with countries outside the union. In some cases, the CET may be adjusted over time as the member countries of the customs union negotiate trade agreements with other countries or regions.

The CET is one of the main tools used by customs unions to promote economic integration and cooperation among member countries. It is often seen as a stepping stone to the creation of a single market, where goods, services, capital, and people can move freely among the member countries.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.