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Copyright Institute of Public Finance 2010
Abstract
The European Union Customs Union is a customs union (i.e. a group of economies with no internal barriers to trade and a common external tariff) consisting of all the member states of the EU and a number of surrounding countries (i.e. EFTA countries -- Norway, Iceland, Liechtenstein and Switzerland). The Customs Union is an essential element in the functioning of the single market and fulfils a principal task of the European Economic Community established in 1958 by the Treaty of Rome. The EU has been a key player in international trade liberalization negotiations. The latest of these is the so-called Doha Development Round which began in 2001. The EU's trade policy is closely linked to its development policy. The Union has granted duty-free or cut-rate access to its market for most of the imports from developing countries under its generalized system of preferences.
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