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Customs Union

Chip Phuong

Created on February 9, 2023

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February 15, 2023

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The Customs Union

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What is the Customs Union? How does it affect the world economy? Is it important? Effect of Custom Union on Viet Nam?

Group 7

Summary

The advantages and disadvantages.

What is the Customs Union and its purpose?

Comparison between EU and other form of economics integration.

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Customs Union in the world.

EVFTA.

European Union.

The Customs Union

an agreement between two or more neighboring countries to remove trade barriers, reduce or abolish customs duty, and eliminate quotas.

The Purpose

is to make it easier for member countries to trade freely with each other.

1. Static effects:

2. Dynamic effects:

The advantages

1.1. Trade creation 1.2 Trade diversion

2.1. Increased competition 2.2. Economies of scale 2.3. Stimulus to investment 2.4. Better utilization of the economic resources

The Disadvantages

3.Complexity of setting the tariff rate.

The process is extremely costly and time-consuming.

2. Distribution of tariff revenues.

It is estimated that the cost of collecting this revenue exceeds the actual revenue collected.

1. Loss of economic sovereignty.

If a country wants to protect an infant industry in its market, it is unable to do so by imposing tariffs or other protective barriers due to the liberal trading policies.

Compare custom union and other forms of economic integration.

1.Custon Union (CU): apply same tariff system to all countries => unification of trade policies between member and non-member. 2.Free Trade Areas (FTA): remove trade barriers to member countries.

3.Commom market (CM) = CU + free flow capital and labor. 4.Monetary Union (MU): CM + same monetary system 5.Economic Union = MU + unification of economic policy

The European Union

The European Union (EU) is a supranational political and economic union of 27 member states that are located primarily in Europe.

Maastricht Treaty

The Values

The Aims

  • Human dignity
  • Freedom
  • Democracy
  • Equality
  • Rule of law
  • Human rights

The European Union was created to bind the nations of Europe closer together for the economic, social, and security welfare of all.

European Union–Vietnam Free Trade Agreement (EVFTA)

The agreement was passed in Vietnam on June 8, 2020.

  • Eliminating 99% of all tariffs.
  • Reducing regulatory barriers and overlapping red tape.
  • Ensuring protection of geographical indications.
  • Opening up services and public procurement markets.
  • Making sure the agreed rules are enforceable.

NEWSPAPER

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