Customs Union

Customs Union

A trading area covering two or more countries that agree to abolish internal tariffs and restrictions on the amount of trade such as quotas, and have a common external tariff and other common trade controls. 




- Not to be confused with a free trade area - which has no common customs and no common trade policy


The EU is a customs union with a common commercial policy as an exclusive EU competence 


EFTA is a free trade area where member states can have different trade policies 


- The EEA agreement and bilateral agreements with Switzerland has established a joint free trade zone internally between the EU and most EFTA countries