The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Customs Unions

  • Arthur Hazlewood
Reference work entry


A customs union consists of two or more countries which have no tariff barriers between themselves and a common tariff against the rest of the world. There are variants which involve a greater or lesser degree of economic integration. A free trade area has no common external tariff; a union with free movement of production factors, particularly of labour, is often called a common market.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Arthur Hazlewood
    • 1
  1. 1.