Macroeco Flashcards
1
Q
Features of a custom union
A
- Safety measures for imported goods, such as for food, are common across all members. There are common customs rules and procedures.
- There is a structure for the combined administration of the nations within the Customs Union.
- There is a common trade policy. This helps to create and guide trading relationships with countries and blocs outside the Customs Union.
2
Q
Features SEM
A
• free movement of goods and services for example free trade in nearly all areas
• free movement of workers and capital
• common product standards and regulations
• some fiscal coordination for example members must have a sale tax such as VAT of at least 15%
• a common external tariff on imports into the EU
• competition policy is common across the whole of the EU
• common external tariffs
the single European market is not fully complete as there is not yet a free market across the EU in certain industries such as energy and financial services.
