4 Important Customs Union Agreements
1 - European Union Customs Union
2 - Mercosur
3 - Eurasian Customs Union
4 - Gulf Cooperation Council
Source : www.wikipedia.org
Customs unions are agreements between countries that involve the elimination of tariffs, quotas, and other trade barriers between member countries while maintaining common external tariffs for non-members. In this way, customs unions promote economic integration and facilitate trade between member countries.
One of the most significant customs unions in the world is the European Union Customs Union, which was established in 1968. The EU Customs Union comprises 27 member states and has a common external tariff that applies to all goods imported from non-member countries. The EU Customs Union also eliminates customs duties on goods traded between member states, making it easier and cheaper for businesses to trade within the bloc.
Another significant customs union is Mercosur, which is a South American trade bloc established in 1991. The members of Mercosur are Argentina, Brazil, Paraguay, and Uruguay, with Venezuela currently suspended from the group. Mercosur has a common external tariff and has implemented a number of trade agreements with other countries and regions, such as the European Union.
The Eurasian Customs Union was established in 2010 and includes three member states: Belarus, Kazakhstan, and Russia. The Customs Union has a common external tariff and eliminates customs duties on goods traded between member states. The Customs Union has also implemented a number of trade agreements with other countries, such as China.
The Gulf Cooperation Council Customs Union is a customs union established in 2003 between six countries in the Persian Gulf region: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The GCC Customs Union has a common external tariff and eliminates customs duties on goods traded between member states, facilitating trade between the countries.
In conclusion, customs unions play an important role in promoting economic integration and facilitating trade between member countries. The EU Customs Union, Mercosur, the Eurasian Customs Union, and the GCC Customs Union are all significant customs unions that have eliminated trade barriers and implemented common external tariffs, making it easier and cheaper for businesses to trade within and between the blocs. These agreements have contributed to the economic growth and development of member countries and have increased their competitiveness in the global market.