DS SEMINAR QN NO 9 ANSWERS(CUSTOM UNION & FREE TRADE
Custom union, refers to the intergration in the members set the common tariffs against the non-members 0nly the participants members set the common external policies.this is the second stage of the classical theory of custom union which maintain that region intergration move in stage from the low (free trade ) to deep(political federation) , the good example of custom union in the world is european economic community but the East Africa community also considered as the custom union which consist of numbers of members as Tanzania, Kenya, Uganda, Rwanda, Burundi, South sudan. most purpose of custom union is to make easier member countries to trade freely with others within the custom with different advantages as increase of trade flows and economic diversification reduces the trade deflection but also the custom union has some negatives as loss of economic sovereignty where non-tariff trade barries are the obstacles that hinders the development of free trade among the...