Common External Tariff - Analysis and Evaluation

This is an example of a colour coded approach to writing an exam essay for A2 macro on the impact on consumers and producers of the common external tariff which is part of the EU's customs union.

What is a customs union?

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. In the case of the EU, the tariff imposed on, say, imports of South Korean TV screens will be the same in the UK as in any other EU country

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