Customs Union - Explained
What is a Customs Union?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is a Customs Union?
The customs unions is an essential part of many state's trade associations. By definition, this is a form of trade agreements that bind two or more countries. It generally means that the parties decide not to impose various tariffs such as a tax on their imports or each other's products. They, however, agree to impose the same elements to common external tariffs from other states outside of their trade unions.
Examples of Customs Unions
- Southern African Development Community (SADC)
- Economic Community of Central African States (ECCAS)
- Arab Customs Union (ACU)
- African Economic Community (AEC)
- Australia New Zealand (Closer Economic Relations Trade Agreement)