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customs union
(redirected from customs unions)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia, Hutchinson 0.07 sec.

customs union

Trade agreement by which a group of countries charges a common set of tariffs to the rest of the world while allowing free trade among themselves. It is a partial form of economic integration, intermediate between free-trade zones, which allow mutual free trade but lack a common tariff system, and common markets, which both utilize common tariffs and allow free movement of resources including capital and labour between members. Well-known customs unions include the Zollverein, a 19th-century organization formed by several German states under Prussian leadership, and the European Union, which passed through a customs-union stage on the path to fuller economic integration. See also European Community; General Agreement on Tariffs and Trade; North American Free Trade Agreement; World Trade Organization.



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Curiously, however, the past decade has seen the establishment of numerous trade agreements ranging from preferential trade areas to customs unions independent of the WTO.
Some propounded customs unions, others pan-European union, while the French foreign minister, Aristide Briand, proposed "the establishment of a common market aiming to raise the level of human well-being on all the territories of the European community.
Worldtariff also provides customized preference duty tables which assist in navigation through customs unions and free trade areas, such as NAFTA.
 
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