Customs union is two or more States to conclude agreements, to establish a unified customs territory of the customs territory of States Parties in a unified inter-reduction or elimination of tariffs, from the customs territory of the country or region other than the imports of goods is the implementation of a common tariff tax and trade policies. Customs union from European countries, is a form of economic integration organization. Domestic production line of tariff reductions and trade restrictions, free movement of goods; of external tariffs and unified external trade policy. There are two economic effects of customs union, static effects and dynamic effects.
Customs union - the historical background
Customs union customs union is the national tariffs between the conclusion of bilateral or multilateral agreements. The contents typically include reducing and eliminating tariffs between the parties, and ultimately abolish the customs territory of the countries within the alliance to achieve the free movement of goods between the parties; coordinated States tariff rates, the implementation of common external tariffs, the establishment of a common customs territory to strengthen the Allies in the competitive power of foreign trade. In addition, the contents of the agreement also involves those who often have limited effect on trade costs and limits. Customs union between different countries, although the content more than form a resemblance, but concluded between developing and developed countries to conclude customs union customs union is not the same in nature. The former is part of a defensive nature; while the latter is the contention of the purpose of the alliance of countries participating in the international market, fierce competition for trade war that in a good position.
Established in 1834 and gradually expand the development of the German customs union, customs union is the early emergence of the organization, was to promote economic development and political unity of Germany played a role. In the 1870s before the establishment of a unified German Empire, German states and between the internal states, barriers everywhere, hindering the development of industry and commerce. In 1818, Prussia abolished the first mainland tariff; followed in 1826 established the North German customs union; two years later, they were built two German states and the Nande customs union.
1834 from 18 states together to form Prussia as the chief of the German customs union; Since then, the alliance further extended to all German regions, become German customs union. Alliance of the Convention include: abolition of internal tariffs, common external tariff, raising import tax rates, tariff revenue pro rata to the Union of states and so on. In addition, in 1865 established a customs union between France and Monaco.
1924 Switzerland and Liechtenstein to establish a customs union; 1948, Belgium, the Netherlands, Luxembourg, the establishment of a customs union; countries in the European Economic Community in 1958, concluded a customs union; was established in 1960, the European Free Trade Association; and the Central African Customs and Economic Union and the Southern African Customs Union, and so on. At that time the European Free Trade Association, and is different from the European Economic Community customs union, free trade within the former q is limited to industrial, countries outside the Union is not a unified tariff.
Customs union - the main features ofCustoms union can be roughly divided into two categories:
Books related to the customs union established between a class in developed countries, such as the European Economic Community's customs union, its purpose is to ensure that Western Europe's market, boycott U.S. products competitive, to promote the development of internal trade, and actively promote the process of European economic integration .
The other is by developing countries to establish a customs union, its main purpose is to safeguard the national interests of countries in the region, promote regional economic cooperation and common development. Such as the Central African Customs and Economic Union League, the Andean Pact, Caribbean Community and Common Market, the Economic Community of West African States, Economic Community of Great Lakes Countries, the Economic Community of Central African States. The main features of a customs union: Member States not only removed trade barriers between each other, free trade, but also to establish a common external tariff. In other words, customs union members, in addition to each other mutually agreed to eliminate trade barriers, but also to adopt a common external tariff and trade policies. GATT provisions, the establishment of a customs union, if not immediately, but gradually after a period of time to complete, should be completed within a reasonable period, this period is not more than 10 years.
Prerequisite for the establishment of customs union
1, has established a customs union or interim agreement signed by the parties for non-union or interim agreement by participating countries to implement tariffs or other trade regulations, in general, not higher or more stringent than an alliance or agreement entered into before the constituent territories implementation of appropriate measures to limit the general level.
2, the establishment of free trade areas or interim agreements entered into after the constituent territories of the non-trading blocs or agreements of the participating countries to implement trade tariffs and other trade regulations, the composition may be higher or more stringent than before the implementation of a common customs territory of the corresponding restrictive measures.
3, the Interim Agreement there shall be established within a reasonable period customs union or free trade zone and the process table.
Customs Union - protectionCustoms union the exclusive protection measures are the following:
Customs analysis of Figure 1, reducing the alliance until the abolition of internal tariffs. To this end, alliance members in the alliance is often provided within a certain period of time must be phased in gradually from their current external tariff rates, the transition to the league under the uniform tariff rate, until the last member to cancel each other's tariff
2, the development of common external trade policy and foreign tariffs. On the external front, the Allied members must be within the specified time, up or down, respectively, from their original external tariff rates, and ultimately establish a common external tariff; and gradually unify their foreign trade policies, such as discrimination of foreign policy, imports restrictions;
3, for goods imported from outside the alliance, according to the type of goods and the provision of different countries, different customs duties levied common, such as preferential tax rates, state tax agreement, the MFN tariff rates, general preferential tax, general tax rate;
4, the development of uniform protective measures, such as import quotas, health and epidemic prevention and so on.
