Member States of a Customs UnionA customs union is an agreement between two or more neighbouring countries for the removal of trade barriers, the abolition or abolition of tariffs and the abolition of quotas. These unions have been defined in the General Agreement on Tariffs and Trade (GATT) and are the third stage of economic integration. The Committee on Economic Relations and Policy of Economic Union and The Policy of Economic Union and Eastern Europe Customs Unions are agreements between countries in which the parties agree to allow free trade in goods within the customs union and agree on a common external tariff (CET) for imports from the rest of the world. It is this CET that distinguishes a customs union from a regional trade agreement. It is important to note that, although trade within the Union is comprehensive, customs unions do not allow the free movement of capital and labour between Member States. The customs union of Russia, Belarus and Kazakhstan, founded in 2010, is an example. These countries have removed trade barriers between them, but they have also agreed on some common policies on relations with third countries. Depending on the conditions and concessions agreed by the participating bodies, there are different types of trade agreements – the United States has free trade agreements (FTAs) with 20 countries. These free trade agreements are based on the WTO agreement, with broader and stronger disciplines than those of the WTO. Many of our free trade agreements are bilateral agreements between two governments. But some, such as the North American Free Trade Agreement and the Dominican Republic-Central America-U.S. Free Trade Agreement, are multilateral agreements between several parties.
APTA is a preferential trade regime for the gradual liberalisation and expansion of merchandise trade in the Asia-Pacific Economic and Social Commission (ESCAP) region through the liberalisation of tariff and non-tariff barriers. Currently, Bangladesh, Sri Lanka, South Korea, India and China exchange tariff concessions under APTA. At the 43rd permanent session in May 2014, Mongolia was invited to participate in APTA. It is the only PTA between India and China. The United States has another multilateral regional trade agreement: the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). This agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua eliminated tariffs on more than 80% of U.S. non-textile exports. As a general rule, the benefits and obligations of trade agreements apply only to signatories. The most favoured nation clause prevents one of the parties to the current agreement from continuing to remove barriers to another country. For example, in exchange for reciprocal concessions, Country A could agree to reduce tariffs on certain products from Country B. In the absence of a clause of the most favoured nation, Country A could still reduce tariffs on the same goods from Country C in exchange for other concessions. As a result, consumers in Country A could purchase the products in question at a cheaper price in Country C because of the tariff difference, while Country B would get nothing for its concessions.
The status of the most favoured nation means that A is required to extend the lowest existing tariff to certain products to all its trading partners enjoying such status. If A later accepts a lower rate with C, B automatically gets the same lower rate. So far, you have seen international organizations such as the WTO, the IMF and the World Bank support world trade, but that is only part of history. Where world trade really has a boost, there are trade agreements (also known as trade blocs). This is where the term „global economic integration“ takes its feet – the process of changing barriers between nations and between nations to create a fully integrated global economy. Trade agreements differ by rap