TEXT B. CUSTOMS UNIONS

A customs union is an agreement between two or more countries. The main clauses of such an agreement are:

1) the abolition of tariffs, quotas and other restrictions on the importation and exportation of goods among the member territories;

2) the establishment of a uniform tariff on imports from outside the union;

3) the creation of joint organs to consider common economic and commercial policies.

The first customs union was established in 1819 between Prussia and the principality of Shwartzburg. The starting point of the customs union called the Zollverein was the Prussian customs tariff which involved the abolition of all internal duties and artificial barriers to interstate trade.

The most comprehensive customs unions are the Benelux and the European Economic Community. The Benelux area comprises Belgium, Luxemburg and the Netherlands and it was founded in the 1940-s. The EEC had resulted from the Benelux area, on the one hand, and the European Coal and Steel Community (ECSC), on the other hand. On March 25, 1957, the members of the ECSC, the Benelux area, France, Germany and Italy signed the Treaty of Rome. Since then, Great Britain, Greece, Portugal, Ireland and some other countries have become its members. Now the EEC is a customs union with a common commercial policy, abolished customs duties and restrictions on the entry and outflow of the merchandise within its territory.

After the Soviet Union’s collapse the Soviet Republics – now independent states – faced an economic, military and political disaster. Russia, Kirghizia, Kazakhstan and Belarus formed a customs union. The customs union set forth a principle of maximum transparency of the internal borders in order to create a frontier free market. But there are some difficulties and shortcomings such as growing social instability, political corruption and growing gap between the rich and the poor.

Working on the text

Ex.7. Read the text and answer the following questions.

1. What is a customs union?

2. What are the main clauses of such an agreement?

3. When was the first customs union established?

4. What was the name of the union?

5. What are the most comprehensive customs unions nowadays?

6. What countries does the Benelux area comprise?

7. When was the EEC founded?

8. Why did the former Soviet Republics form a customs union?

Ex.8. Problem questions.

1. Why is the problem of forming customs unions so urgent nowadays?

2. What advantages and disadvantages do customs unions possess?

Ex.9. Make a short summary of the text.

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UNIT IV. CUSTOMS PAYMENTS	\|	UNIT V. THE RUSSIAN CUSTOMS SERVICE

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