Common external tariff

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The examples and perspective in this article deal primarily with West Africa (ECOWAS) and do not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (September 2022) (Learn how and when to remove this message)

A common external tariff (CET) must be introduced when a group of countries forms a customs union. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering. It is designed to end re-exportation; but it may also inhibit imports from countries outside the customs union and thereby diminish consumer choice and support protectionism of industries based within the customs union. The common external tariff is a mild form of economic union but may lead to further types of economic integration. In addition to having the same customs duties, the countries may have other common trade policies, such as having the same quotas, preferences or other non-tariff trade regulations apply to all goods entering the area, regardless of which country, within the area, they are entering.

The main goal of the Custom Unions is to limit external influence, liberalize intra-regional trade, promote economic development and diversification in industrialization in the Community.

Examples of a common external tariff are those of the Mercosur countries (Brazil, Argentina, Venezuela, Paraguay and Uruguay), the Economic Community of West African States, the Common Customs Tariff of the Eurasian Economic Community customs union and the European Union Customs Union.