An economic union is a type of trade bloc which is composed of a common market with a

customs union A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff.GATTArticle 24 s. 8 (a) Customs unions are established through trade pacts where the participant countries set up ...

. The participant countries have both common policies on product regulation, freedom of movement of

goods In economics, goods are items that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not ...

, services and the factors of production (

capital Capital may refer to: Common uses * Capital city, a municipality of primary status ** List of national capital cities * Capital letter, an upper-case letter Economics and social sciences * Capital (economics), the durable produced goods used fo ...

and labour) and a common external trade policy. When an economic union involves unifying currency it becomes an economic and monetary union. 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 * Central American Common Market - Common market since 1960, customs union since 2004. * Eurasian Economic Union - Customs union since 2010, common market since 2012. *

European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are located primarily in Europe, Europe. The union has a total area of ...

- Economic union between all EU member states, but those of them inside the

Eurozone The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU pol ...

are also part of an economic and monetary union. *

Gulf Cooperation Council The Cooperation Council for the Arab States of the Gulf ( ar, مجلس التعاون لدول العربية الخليج ), also known as the Gulf Cooperation Council (GCC; ar, مجلس التعاون الخليجي), is a regional, inter ...

* 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

, 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.

Proposed

* African Economic Community (AEC) - proposed for 2023 *

Andean Community The Andean Community ( es, Comunidad Andina, CAN) is a free trade area with the objective of creating a customs union comprising the South American countries of Bolivia, Colombia, Ecuador, and Peru. The trade bloc was called the Andean Pa ...

(CAN) * Arab Customs Union and Common Market - proposed for 2020Leaders set to approve Arab customs union
/ref> * CANZUK * Central American Common Market (CACM) * Closer Economic Relations of

Australia Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...

and

New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island coun ...

East African Community The East African Community (EAC) is an intergovernmental organisation composed of seven countries in the Great Lakes region of East Africa: the Democratic Republic of the Congo, the United Republic of Tanzania, the Republics of Kenya, Buru ...

(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 The Union of South American Nations (USAN; es, links=no, Unión de Naciones Suramericanas, UNASUR; pt, links=no, União de Nações Sul-Americanas, UNASUL; nl, links=no, Unie van Zuid-Amerikaanse Naties, UZAN; French: ''Union des nations s ...

(USAN)

References

External links

Economic Integration: Overview
{{Trade Economic integration Customs unions

List of economic unions

Proposed

See also

References

External links