Tariffs
Customs Union
Also known as: CU, Customs integration
An agreement between two or more countries to eliminate tariffs among themselves and establish a common external tariff toward third countries.
Also known as: CU, Customs integration
An agreement between two or more countries to eliminate tariffs among themselves and establish a common external tariff toward third countries.
A customs union is a form of economic integration where two or more countries eliminate tariffs between themselves and adopt a common external tariff (CET) applicable to imports from third countries. It represents a deeper level of integration than a free trade agreement.
Free Trade Agreement (FTA)
International agreement that eliminates or reduces tariffs and trade barriers between signatory countries.
TariffsMost Favored Nation
A WTO principle requiring that any trade advantage granted to one member country must automatically be extended to all other WTO members.
TradeRules of Origin
Criteria determining the economic nationality of goods, required to qualify for preferential tariff rates under free trade agreements.
TariffsPreferential Tariff Rate
A reduced or zero duty rate applied to imports from countries with which a free trade agreement or other preferential arrangement is in effect.