Customs Unions Welfare

In the following paper we look further to analyse the main theories and policies about Customs Unions. We trying also, to examine the effects of Customs Unions in the welfare and the arguments of Viner and Lipsey, who both of them gave its separate definitions on this topic area. Moreover, with our recommendations, we are trying to make a deeper analysis, to agree or to disagree on these significant economical theories. Customs Union is a free trade area with common external tariffs and quotas, but in addition members of each Customs Unions have to adopt common external tariffs and quotas with nonmembers countries. Furthermore, Customs Unions means that there is a common market where the member countries acting as a single market with free movement of labour and capital, common taxes and trade laws. Purposes for establishing a customs union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries. There are many examples of Customs Unions through the world, such as, European Union Custom Union, Central American Common Market (CACM), Andean Community (CAN), Caribbean Community (CARICOM), Economic and Monetary Community of Central Africa (CEMAC), East African Community (EAC), Eurasian Economic Community (EAEC), Arab Customs Union (ACU), etc.