- published: 25 Dec 2012
- views: 263
The Arab customs union is a customs union announced at the Arab League's 2009 Arab Economic and Social Development Summit in Kuwait in order to achieve a functional customs union by 2015 and an Arab common market by 2020 and to increase inter-Arab trade and integration.
The announcement was made by the head of the Arab Customs Union Committee, Saud Al Jefeiri, who recently presided over a two-day meeting of the committee at the Arab League headquarters in Cairo, Egypt.
Participants in the meeting discussed the customs union plan and the structure of the customs union and reviewed the legal structure and regulations for the union. The union will lead to the establishment of an Arab common market.
Al Jefeiri, who represented Qatar at the meeting, said most Arab member countries agreed to put forward an implementing plan, Egypt and Morocco asked for an independent accord to govern the customs union.
The Arab customs union resolution contains 17 chapters and 179 articles regulating economic and trade relationship between Arab countries, and aims to boost trade and investment among member states
A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas. Common competition policy is also helpful to avoid competition deficiency.
Purposes for establishing a customs union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries.
It is the third stage of economic integration.
Customs unions are established through trade pacts.
Every Economic union, Customs and monetary union and Economic and monetary union has also a Customs Union
Additionally the autonomous and dependent territories, such as some of the EU member state special territories, are sometimes treated as separate customs territory from their mainland state or have varying arrangements of formal or de-facto customs union, common market and currency union (or combinations thereof) with the mainland and in regards to third countries trough the trade pacts signed by the mainland state.
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