Common external tariff

A common external tariff must be introduced when a group of countries forms a customs union. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering. It is designed to end re-exportation; but it may also inhibit imports from countries outside the customs union and thereby diminish consumer choice and support protectionism of industries based within the customs union. The common external tariff is a mild form of economic union but may lead to further types of economic integration. In addition to having the same customs duties, the countries may have other common trade policies, such as having the same quotas, preferences or other non-tariff trade regulations apply to all goods entering the area, regardless of which country, within the area, they are entering.

Important examples of common external tariff are that of the Mercosur countries (Brazil, Argentina, Venezuela, Paraguay and Uruguay), the Common Customs Tariff of the Eurasian Economic Community customs union as well as the European Union Customs Union.

See also

Alexandre Tombini

Alexandre Antônio Tombini (born December 9, 1963) is a Brazilian economist. He was President of the Central Bank of Brazil until June 13, 2016 when he was replaced by Ilan Goldfajn.

Closer Economic Relations

The Australia–New Zealand Closer Economic Relations Trade Agreement, commonly known as Closer Economic Relations (CER), is a free trade agreement between the governments of New Zealand and Australia. It came into force on 1 January 1983, but the actual treaty was not signed until 28 March 1983 by the Deputy Prime Minister of Australia and Minister for Trade, Lionel Bowen and the New Zealand High Commissioner to Australia, Laurie Francis in Canberra, Australia.

Common Commercial Policy (EU)

The European Union's (EU) Common Commercial Policy or EU Trade Policy is the policy whereby EU member states delegate authority to the European Commission to negotiate their external trade relations, with the aim of increasing trade amongst themselves and their bargaining power vis-à-vis the rest of the world. The Common Commercial Policy is logically necessitated by the existence of the Customs Union, which in turn is also the foundation upon which the Single Market and Monetary Union were later established.

Customs territory

A customs territory is a geographic territory with uniform customs regulations. Existing customs territories consists fall into several types:

A sovereign state

A trade bloc that has a customs union

An autonomous or dependent territory that is granted by the sovereign government some degree of independence in foreign trade and customs policy.There are also some unregulated lands (usually uninhabited) not part of any customs territory.

As of 2010, most customs unions rarely operate as a single entity and are represented in relations with other customs territories either jointly by their member states governments and the union institutions or by only the member states. Thus, in practice, they rarely appear as a single customs territory and instead they operate as a multiple separate customs territories that have the same or similar customs tariff. The European Union (EU) is the only trade bloc in which the union institutions have exclusive competence over the common external tariff and thus sign and ratify agreements with foreign states without direct participation of the EU member states. The EU is also the only trade bloc member of the World Trade Organization, but the EU member states are continuing their own separate memberships, as not all of the WTO issues fall within the scope of exclusive EU competences.

The governing organs (government or other responsible administrative entity for the states and territories, secretariat or similar international organization body for the trade blocs) of the customs territories negotiate and sign trade agreements. In some cases the negotiations are conducted by a trade bloc secretariat, but the actual agreement is signed by the member states of the trade bloc. It is also possible for a group of customs territories, that do not form a customs union (regardless if they cooperate as a different type of trade bloc), to negotiate trade agreements together and to sign the resulting agreement individually (for example, the European Free Trade Association).

A customs territory usually has inspection stations at its borders. There can also be border checks between two parts of the same customs territory. For example, there are border checks between the Schengen Area portions of the EU customs territory and those portions in the Common Travel Area formed by the United Kingdom, Crown Dependencies, and Ireland. Another example is the border checks between Israel and the Palestinian Territories, which are in a customs union. The European Union example is particularly complicated, since it also has different boundaries for EU VAT area, the EU excise duty area, the area where EU law applies, and the area considered by the EU statistics agency.

Customs union

A customs union was defined by the General Agreement on Tariffs and Trade as a type of trade bloc which is composed of a free trade area with a common external tariff.The participant countries set up common external trade policy, but in some cases they use different import quotas. Common competition policy is also helpful to avoid competition deficiency.Purposes for establishing a customs union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries.

It is the third stage of economic integration.

Customs unions are established through trade pacts.

East African Community

The East African Community (EAC) is an intergovernmental organization composed of six countries in the African Great Lakes region in eastern Africa: Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. John Magufuli, the president of Tanzania, is the EAC's chairman. The organisation was founded in 1967, collapsed in 1977, and was revived on 7 July 2000. In 2008, after negotiations with the Southern Africa Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), the EAC agreed to an expanded free trade area including the member states of all three organizations. The EAC is an integral part of the African Economic Community.

The EAC is a potential precursor to the establishment of the East African Federation, a proposed federation of its members into a single sovereign state. In 2010, the EAC launched its own common market for goods, labour, and capital within the region, with the goal of creating a common currency and eventually a full political federation. In 2013, a protocol was signed outlining their plans for launching a monetary union within 10 years. In September 2018 a committee was formed to begin the process of drafting a regional constitution.

Economic Community of Central African States

The Economic Community of Central African States (ECCAS; French: Communauté Économique des États de l'Afrique Centrale, CEEAC; Spanish: Comunidad Económica de los Estados de África Central, CEEAC; Portuguese: Comunidade Económica dos Estados da África Central, CEEAC) is an Economic Community of the African Union for promotion of regional economic co-operation in Central Africa. It "aims to achieve collective autonomy, raise the standard of living of its populations and maintain economic stability through harmonious cooperation".

Eurasian Customs Union

The Eurasian Customs Union (EACU) is a customs union which consists of all the Member states of the Eurasian Economic Union.

The customs union is a principal task of the Eurasian Economic Community, established in 2000, and now succeeded by the Eurasian Economic Union. No customs are levied on goods travelling within the customs union and – unlike a free-trade area – members of the customs union impose a common external tariff on all goods entering the union. One of the consequences of the customs union is that the Eurasian Union negotiates as a single entity in international trade deals such as the World Trade Organisation, instead of individual member states negotiating for themselves.

It came into existence on 1 January 2010. Its founding states were Belarus, Kazakhstan and Russia. On 2 January 2015 it was enlarged to include Armenia. Kyrgyzstan acceded to the EEU on 6 August 2015. The original treaty establishing the Customs Union was terminated by the agreement establishing the Eurasian Economic Union, signed in 2014, which incorporated the Customs Union into the EEU's legal framework.

The member states continued with economic integration and removed all customs borders between each other after July 2011. On 19 November 2011, the member states put together a joint commission on fostering closer economic ties, planning to create a Eurasian Economic Union by 2015. On 1 January 2012, the three states formed a single economic space to promote further economic integration. The Eurasian Economic Commission is the regulatory agency for the Customs Union and the Eurasian Economic Community.The creation of the Eurasian Customs Union was guaranteed by 3 different treaties signed in 1995, 1999 and 2007. The first treaty in 1995 guaranteeing its creation, the second in 1999 guaranteeing its formation, and the third in 2007 announced the establishment of a common customs territory and the formation of the customs union.

European Union Customs Union

The European Union Customs Union (EUCU) is a customs union which consists of all the member states of the European Union (EU), Monaco, and some dependencies of the United Kingdom which are not part of the EU. Some detached territories of EU members do not participate in the customs union, usually as a result of their geographic separation. In addition to the EUCU, the EU is in customs unions with Andorra, San Marino, and Turkey, (with the exceptions of certain goods) through separate bilateral agreements.The customs union is a principal component of the European Union, since its establishment in 1958 as European Economic Community. There are no tariffs or non-tariff barriers to trade between members of the customs union and – unlike a free trade area – members of the customs union impose a common external tariff on all goods entering the union.The European Commission negotiates for and on behalf of the Union as a whole in international trade deals (such as that with Canada and many others), rather than each member state negotiating individually. It also represents the Union in the World Trade Organization and any trade disputes mediated through it.

European Union–Turkey Customs Union

On 31 December 1995, a 6 March 1995 Decision of the EC-Turkey Association Council, established by the Ankara Agreement, to implement a customs union (Turkish: Gümrük Birliği) between Turkey and the European Union, came into effect. Goods may travel between the two entities without any customs restrictions. The Customs Union does not cover essential economic areas such as agriculture (to which bilateral trade concessions apply), services or public procurement.

In 1996 a free trade area was established between Turkey and the European Union for products covered by the European Coal and Steel Community. Decision 1/98 of the Association Council covers trade in agricultural products.

In addition to providing for a common external tariff for the products covered, the Customs Union foresees that Turkey is to align to the acquis communautaire in several essential internal market areas, notably with regard to industrial standards.

Free-trade area

A free-trade area is the region encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers – import quotas and tariffs – and to increase trade of goods and services with each other.

If people are also free to move between the countries, in addition to a free-trade agreement, it would also be considered an open border. It can be considered the second stage of economic integration.

Free trade areas in Europe

At present, there are four multi-lateral free trade areas in Europe, and one former free trade area in recent history. Note that there are also a number of bilateral free trade agreements between states and between trade blocks; and that some states participate in more than one free trade area.

Independent Task Force on North America

The Independent Task Force on the Future of North America advocates a greater economic and social integration between Canada, Mexico, and the United States as a region. It is a group of prominent business, political and academic leaders from the U.S., Canada and Mexico organized and sponsored by the Council on Foreign Relations (U.S.), the Canadian Council of Chief Executives, and the Mexican Council on Foreign Relations. It was co-chaired by former Canadian Deputy Prime Minister and Minister of Finance, John Manley, former Finance Minister of Mexico, Pedro Aspe, and former Governor of Massachusetts and Assistant U.S. Attorney General William F. Weld.

It was launched in October 2004 and published Task Force Report #53 entitled, Building a North American Community (May 2005). As well as it accompanying Chairmen’s Statement, Creating a North American Community (March 2005). A press release called Trinational Call for a North American Economic and Security Community by 2010 preceded the publications on March 14, 2005.

The final report proposed increased international cooperation between the nations of Canada, the United States, and Mexico, similar in some respects to that of the European Community that preceded the European Union (EU). As this report states, "The Task Force's central recommendation is establishment by 2010 of a North American economic and security community, the boundaries of which would be defined by a common external tariff and an outer security perimeter."

List of tariffs in France

This is a list of French tariffs.

1806: Continental System

1860: Cobden–Chevalier Treaty

1881: French tariff of 1881

1885: French tariff of 1885

1887: French tariff of 1887

1892: Méline tariff

1968: European Economic Community (Common External Tariff completed 1 July)

List of tariffs in Germany

This is a list of German tariffs.

1834: Zollverein

1879: German tariff of 1879

1885: German tariff of 1885

1887: German tariff of 1887

1902: German tariff of 1902

1925: German tariff of 1925

1968: European Economic Community (Common External Tariff completed 1 July)

Ralph Vibert

Ralph Vibert OBE (November 7, 1911 – November 10, 2008) was Solicitor General of Jersey (1948–1955) and a Senator of the States of Jersey (1959–1987).

Southern African Customs Union

The Southern African Customs Union (SACU) is a customs union among five countries of Southern Africa: Botswana, Lesotho, Namibia, South Africa and Eswatini (formerly Swaziland). Its headquarters are in the Namibian capital, Windhoek. It was established in 1910.

Trade creation

Trade creation is an economic term related to international economics in which trade flows are redirected due to the formation of a free trade area or a customs union. The issue was firstly brought into discussion by Jacob Viner (1950), together with the trade diversion effect.

In the former case after the formation of economic union, the cost of the goods considered is decreased, leading to an increase of efficiency of economic integration. Hence, trade creation's essence is in elimination of customs tariffs on inner border of unifying states (usually already trading with each other), causing further decrease of price of the goods, while there may be a case of new trade flow creation of the goods between the states decided to economically integrate.

The opposite takes place in case of trade diversion, when the trade flow is diverted from actually cost-efficient partner state to less efficient one – but which became a member of economic union and made its goods cheaper within a union, but higher compared to the rest of the world.

In practice, both trade creation and diversion effects take place due to formation of economic union. Efficiency of economic integration of specific union right now is assessed as a final outcome between trade creation and diversion effects: it is cost-effective in case of prevailing of the trade creation effects, and vice versa.

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