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Economic union

World trade
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Policy Import Export Balance of trade Trade law Trade pact Trade bloc Trade creation Trade diversion Export orientation Import substitution Trade finance Trade facilitation Trade route Domestic trade Tax
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History Mercantilism Protectionism Laissez-faire Free trade Economic nationalism Economic integration
Organizations International Monetary Fund International Trade Centre World Trade Organization World Customs Organization International Chamber of Commerce
Economic integration Preferential trading area Free-trade area Currency union Customs union Single market Economic union Fiscal union Customs and monetary union Economic and monetary union
Issues Intellectual property rights Smuggling Competition policy Government procurement Outsourcing Globalization Fair trade Trade justice Emissions trading Trade sanctions War Currency war Trade costs Trade war Trade and development
Lists Imports Exports Tariffs Largest consumer markets Leading trade partners
By country Trade mission Trading nation United States Argentina Pakistan Romania Vietnam India
Theory Comparative advantage Competitive advantage Heckscher–Ohlin model New trade theory Economic geography Intra-industry trade Gravity model of trade Ricardian trade theories Balassa–Samuelson effect Linder hypothesis Leontief paradox Lerner symmetry theorem Terms of trade
v t e

An economic union is a type of trade bloc which is composed of a common market with a customs union.^[1] The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production (capital and labour) as well as a common external trade policy. When an economic union involves unifying currency, it becomes an economic and monetary union.

The purposes for establishing an 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.

List of economic unions

CARICOM Single Market and Economy^[2]
Central American Common Market - Common market since 1960, customs union since 2004.^{[citation needed]}
Eurasian Economic Union - Customs union since 2010, common market since 2012.^{[citation needed]}
European Union (EU) - Economic union of 27 European states, but only 20 are inside the Eurozone are also part of an economic and monetary union.^[3]
European Economic Area (EEA) - Economic area between European Union and EFTA member states (except Switzerland).
Gulf Cooperation Council^[4]^[5]
Mercosur

Note: Every economic and monetary union includes 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 through the trade pacts signed by the mainland state.^[6]

Proposed

African Economic Community (AEC) - proposed for 2023
Andean Community (CAN)^[7]
Arab Customs Union and Common Market - proposed for 2020^[8]
CANZUK
Central American Common Market (CACM)
Closer Economic Relations of Australia and New Zealand
East African Community (EAC) - extension of existing customs union proposed in 2015
Economic Community of Central African States (ECCAS)
Economic Community of West African States (ECOWAS)
Southern African Development Community (SADC) - proposed in 2015
Union of South American Nations (USAN)

References

^ Gancia, Gino; Ponzetto, Giacomo A. M.; Ventura, Jaume (2020-01-01). "A theory of economic unions". Journal of Monetary Economics. SI:APR2019 CRN CONFERENCE. 109: 107–127. doi:10.1016/j.jmoneco.2019.11.007. hdl:10230/45002. ISSN 0304-3932.
^ Established by the Treaty of Chaguaramas in force from 1973-8-1 WT/REG92/R/B/1 Archived 2009-03-27 at the Wayback Machine
^ Established by the Treaty of Rome in force from 1958-1-1. WT/REG138/2 Archived 2012-01-12 at the Wayback Machine
^ Gulf states form common market, BBC News. Retrieved 20 June 2016.
^ "GCC customs union fully operational". The Peninsula. 3 January 2015. Archived from the original on 18 January 2015. Retrieved 20 June 2016.
^ EU Overseas countries and some other territories participate partially in the EU single market per part four of the Treaty Establishing the European Community; Some EU Outermost regions and other territories use the Euro of the currency union, others are part of the customs union; some participate in both unions and some in neither.
Territories of the United States, Australian External Territories and Realm of New Zealand territories share the currency and mostly also the market of their respective mainland state, but are generally not part of its customs territory.
^ Twelfth Andean Presidential Council Act of Lima Archived 2010-07-07 at the Wayback Machine
^ "Leaders set to approve Arab customs union". Archived from the original on 2015-04-02. Retrieved 2010-08-25.

External links

Economic Integration: Overview

v t e Forms of economic integration
Trade bloc	Preferential trading area Free-trade area Economic partnership Passport-free zone Single market
Economic union	Customs union Monetary union Customs and monetary union Economic and monetary union Complete economic integration
Shared policies	Fiscal union Social union Political union
Theory	Economic integration effects Friction of distance Harmonisation of law Theory of the second best
Regions	Europe Latin America Middle East North America

International trade

Terminology

Organizations
and policies

Political economy

Regional organizations

Americas	Andean Community of Nations Caribbean Community Central American Integration System Mercosur
Asia-Pacific	Association of Southeast Asian Nations Regional Comprehensive Economic Partnership South Asian Association for Regional Cooperation
Europe, Central Asia, and North Asia	Customs Union of Belarus, Kazakhstan, and Russia Eurasian Economic Union European Union Customs Union
Middle East and North Africa	Arab Customs Union Cooperation Council for the Arab States of the Gulf
Subsaharan Africa	East African Community Economic and Monetary Community of Central Africa Southern African Customs Union West African Economic and Monetary Union

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Economic union

List of economic unions

Proposed

See also

References

External links