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Economic Definition of customs union. Defined.

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Term customs union Definition: An agreement among two or more nations to eliminate trade restrictions with each other and to adopt a common trade policy with other nations. There is, however, no effort to allow free movement of resources among the countries nor to adopt common monetary or fiscal policies. This is considered the second of four levels of integration among nations. See common market, economic union, free-trade area for the other three levels.

 

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