Customs Union
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ECONOMICS
International Trade
Customs Union
Unified tariffs inside, shared barriers outside: the paradox of customs unions
13 days ago
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What is a key trade-off for countries joining a customs union?
They maintain full control over all their trade policies while enjoying free trade with members.
They only remove tariffs between members without any changes to external trade policies.
They gain free trade internally but must adopt a common external tariff, losing some trade policy independence.
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