Customs Union – One Wall for the World! 🧱

Definition: FTA + Common External Tariff (CET).

What changed?

• Inside: 0% Tax (Like FTA).
• Outside: All members charge the SAME tax to outsiders.
• Example: MERCOSUR (Brazil, Argentina, etc.).
  • Brazil charges China 15%.
  • Argentina charges China 15%.
  • No cheating possible!

Advantage: No need for "Rules of Origin" checks at internal borders. Once goods enter the Union, they can move freely.

Quiz Time! 🎯

💡 Final Wisdom: "A Customs Union acts like a single country to the outside world. 'Attack one, attack all!'" 🛡️

Next up: Common Market - Free movement of People and Money! 💶