A customs union (关税同盟 guān shuì tóng méng) refers to an agreement by which member countries charges a universal set of tariffs to the rest of the world while granting free trade among members so that goods can flow freely among members.
Part 1: Breakdown of Words
- Literally, “关税同盟” (guān shuì tóng méng) means “tariff alliance/tariff coalition”.
- “Customs” (海关 hǎi guān) refers to the official department that administers and collects the duties levied by a government on imported goods, based on “ocean/sea” (海 hǎi)and “pass” (关 guān).
- “Union” (同盟 tóng méng) derives from:
Part 2: Examples
- European Union Customs Union (欧盟关税同盟 ōu méng guān shuì tóng méng).
- Benelux Customs Union (比荷卢关税同盟 bǐ hé lú guān shuì tóng méng).
- Eurasian Customs Union (欧亚关税同盟 ōu yà guān shuì tóng méng).
- German Customs Union (德意志关税同盟 dé yì zhì guān shuì tóng méng).