customs union |
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Definition
Agreement between two or more (usually neighboring) countries to remove trade barriers, and reduce or eliminate customs duty on mutual trade. A customs union (unlike a free trade area) generally imposes a common external-tariff (CTF) on imports from non-member countries and (unlike a common market) generally does not allow free movement of capital and labor among member countries.
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customs union is in the Banking, Commerce & Finance, Economics, Politics, & Society and International Trade & Relations subjects.
customs union appears in the definitions of the following terms: MERCOSUR, most favored nation (MFN), trade pact, Benelux, Trade and Investment Framework Agreement (TIFA) and Preferential Trade Agreement (PTA)
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