Customs union

As a customs union is called in economics a form of economic integration. This is a grouping of countries, which form a common customs territory.

A customs union consists firstly of a free trade area (ie abolition of internal tariffs and other trade restrictions). This must not be customs cleared goods at a transfer from one Member State to another. The proof is carried out under the internal Community transit procedure by a T2 - paper. However, this evidence is only required where, in transport, the territory of a third country is touched (eg from Italy to Germany via Switzerland ).

Secondly, a customs union by a common external tariff of the Member States towards third countries characterized. The formation of customs unions is associated with trade creation and handelsumlenkenden effects. Trade creation arises from the fact that the elimination of customs duties, foreign goods cheaper, thus the foreign trade is stimulated. To trade diversion, it comes from the fact that trading partners who remain outside the customs union, are compared with those discriminated against within the customs union formed. Producers from a partner country are no longer burdened by the customs and therefore can offer cheaper might as efficient producers from a third country, which are therefore displaced.

A customs union is therefore only be assessed as economically efficient if the trade creation than offset the effects of trade diversion.

Examples

  • German Zollverein
  • Switzerland - Liechtenstein ( since 1924, the Swiss customs territory )
  • Not implemented in 1931, the German - Austrian Customs Union
  • European Customs Union ( Customs Union between the European Union, Turkey, Andorra, Monaco, Vatican City and San Marino)
  • Southern African Customs Union
  • Customs Union between Russia, Belarus and Kazakhstan (in force since 1 July 2010 )
  • East African Community ( Customs Union between Burundi, Kenya, Rwanda, Tanzania and Uganda)
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