Customs Union

Customs Union is an agreement between neighboring countries to trade freely with each other by removing any administrative and financial barriers.

What is Customs Union ?
Customs Union is an agreement between neighboring countries wherein trade barriers are removed, and customs duty is reduced or eliminated. Such unions help increase trade and foster economic integrations among the countries involved. 

Countries within the union can trade freely with each other without paying tariffs. However, external countries trading with countries in the customs union need to make a single payment. Once the goods have crossed the border and entered the union, trade can occur with no additional tariffs.    

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