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Customs Union

A customs union is a group of countries that agree to eliminate tariffs and other trade barriers on goods and services among themselves, and also agree to adopt a common set of tariffs on imports from non-member countries. The goal of a customs union is to promote trade among member countries and to reduce the cost of importing goods from non-member countries by eliminating the need for multiple tariffs.

Here are four examples of customs unions:

  1. The European Union (EU) is a customs union that includes 27 countries in Europe. The EU has a common set of tariffs on imports from non-member countries and has eliminated tariffs on most goods and services among member countries.
  2. The Andean Community is a customs union that includes Bolivia, Colombia, Ecuador, and Peru. The Andean Community has a common set of tariffs on imports from non-member countries and has eliminated tariffs on most goods and services among member countries.
  3. The Southern African Customs Union (SACU) is a customs union that includes Botswana, Eswatini, Lesotho, Namibia, and South Africa. SACU has a common set of tariffs on imports from non-member countries and has eliminated tariffs on most goods and services among member countries.
  4. The East African Community (EAC) is a customs union that includes Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. The EAC has a common set of tariffs on imports from non-member countries and is working to eliminate tariffs on most goods and services among member countries.

See also

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