International Economics >> The forms of customs cooperation
The forms of customs cooperation
The customs cooperation refers to preferential trading arrangements between a group of nations aimed at establishing free trade among themselves while maintaining trade barriers with the rest of the world (ROW). The grouping of nations may be in the form of a club, a union or an association formed under political and economic compulsions-e-mote by the former than the latter. The major forms of regional economic associations are following listed in the increasing order of their cohesiveness.
1. Preferential trading club,
2. Free trade area,
3. Customs union,
4. Common market, and
5. Economic union.
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