Economics Trade Barriers Questions
A customs union is a form of regional economic integration where member countries agree to eliminate trade barriers, such as tariffs and quotas, among themselves while maintaining a common external tariff on imports from non-member countries. In other words, it is a trade agreement between countries that aims to promote free trade within the union while establishing a unified trade policy towards non-member countries. Customs unions typically involve deeper economic integration than free trade agreements, as they require a higher level of coordination and cooperation among member countries.