Economic union
Encyclopedia
An economic union is a type of trade bloc
which is composed of a common market with a customs union
. The participant countries have both common policies on product regulation, freedom of movement
of goods, services and the factors of production
(capital
and labour) and a common external trade policy.The countries often share a common currency.
Purposes for establishing a economic union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries.
Economic union is established through trade pact
.
has also an Economic 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 pact
s signed by the mainland state.
Trade bloc
A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, are reduced or eliminated among the participating states.-Description:...
which is composed of a common market with a customs union
Customs union
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...
. The participant countries have both common policies on product regulation, freedom of movement
Freedom of movement
Freedom of movement, mobility rights or the right to travel is a human right concept that the constitutions of numerous states respect...
of goods, services and the factors of production
Factors of production
In economics, factors of production means inputs and finished goods means output. Input determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a production function...
(capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
and labour) and a common external trade policy.The countries often share a common currency.
Purposes for establishing a economic union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries.
Economic union is established through trade pact
Trade pact
A trade pact is a wide ranging tax, tariff and trade pact that often includes investment guarantees. The most common trade pacts are of the preferential and free trade types are concluded in order to reduce tariffs, quotas and other trade restrictions on items traded between the signatories.-By...
.
List of economic unions
Every Economic and monetary unionEconomic and monetary union
An economic and monetary union is a type of trade bloc which is composed of an economic union with a monetary union. It is to be distinguished from a mere monetary union , which does not involve a common market. This is the fifth stage of economic integration...
has also an Economic Union
- Single market of the European Union
- CARICOM Single Market and EconomyCARICOM Single Market and EconomyThe CARICOM Single Market and Economy, also known as the Caribbean Single Market and Economy , is an integrated development strategy envisioned at the 10th Meeting of the Conference of Heads of Government of the Caribbean Community which took place in July 1989 in Grand Anse, Grenada...
of the Caribbean CommunityCaribbean CommunityThe Caribbean Community is an organisation of 15 Caribbean nations and dependencies. CARICOM's main purposes are to promote economic integration and cooperation among its members, to ensure that the benefits of integration are equitably shared, and to coordinate foreign policy... - Union State of RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
and BelarusBelarusBelarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,... - Monaco - European UnionMicrostates and the European UnionThere are a number of microstates in Europe; due to their size, they are often closely linked with another larger state. Currently, the European microstates have special relations with the European Union....
Additionally the autonomous and dependent
Dependent territory
A dependent territory, dependent area or dependency is a territory that does not possess full political independence or sovereignty as a State, and remains politically outside of the controlling state's integral area....
territories, such as some of the EU member state special territories, are sometimes treated as separate customs territory
Customs territory
A customs territory is a territory with individual customs regulations.The most common type of customs territory is the sovereign state and the others are the Trade bloc that has a customs union; and the autonomous or dependent territory that has independence in foreign trade and customs...
from their mainland state or have varying arrangements of formal or de-facto customs union
Customs union
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 market and currency union
Currency union
A currency union is where two or more states share the same currency, though without there necessarily having any further integration such as an Economic and Monetary Union, which has in addition a customs union and a single market.There are three types of currency unions:#Informal - unilateral...
(or combinations thereof) with the mainland and in regards to third countries trough the trade pact
Trade pact
A trade pact is a wide ranging tax, tariff and trade pact that often includes investment guarantees. The most common trade pacts are of the preferential and free trade types are concluded in order to reduce tariffs, quotas and other trade restrictions on items traded between the signatories.-By...
s signed by the mainland state.
Proposed
- 2015 East African CommunityEast African CommunityThe East African Community is an intergovernmental organisation comprising the five east African countries Burundi, Kenya, Rwanda, Tanzania, and Uganda. Pierre Nkurunziza, the President of the Republic of Burundi, is the current Chairman of the East African Community. The EAC was originally...
(EAC) - 2015 Southern African Development CommunitySouthern African Development CommunityThe Southern African Development Community is an inter-governmental organization headquartered in Gaborone, Botswana. Its goal is to further socio-economic cooperation and integration as well as political and security cooperation among 15 southern African states...
(SADC) - 2015 Southern Common Market (Mercosur)
- 2020 Arab Customs Union and Common MarketArab Customs UnionThe 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...
- 2023 African Economic CommunityAfrican Economic CommunityThe African Economic Community is an organization of African Union states establishing grounds for mutual economic development among the majority of African states...
(AEC) - Andean Community (CAN)
- Economic Community of Central African StatesEconomic Community of Central African StatesThe Economic Community of Central African States is an Economic Community of the African Union for promotion of regional economic co-operation in Central Africa...
(ECCAS) - Economic Community of West African StatesEconomic Community of West African StatesThe Economic Community of West African States is a regional group of fifteen West African countries. Founded on 28 May 1975, with the signing of the Treaty of Lagos, its mission is to promote economic integration across the region....
(ECOWAS) - Gulf Cooperation Council
- Common Economic Space of the Eurasian Economic CommunityEurasian Economic CommunityThe Eurasian Economic Community originated from the Commonwealth of Independent States customs union between Belarus, Russia and Kazakhstan on 29 March 1996...
(EurAsEC) - Closer Economic RelationsCloser Economic RelationsCloser Economic Relations is a free trade agreement between the governments of New Zealand and Australia. It is also known as the Australia New Zealand Closer Economic Relations Trade Agreement and sometimes shortened to...
of AustraliaAustraliaAustralia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and New ZealandNew ZealandNew Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga... - Central American Common Market (CACM)
See also
- List of continental intergovernmental organizations
- List of economic communities
- List of free trade agreements