Under regional economic integration frameworks such as the Economic Community of West Afri… — JAMB UTME

Under regional economic integration frameworks such as the Economic Community of West African States (ECOWAS), which stage of integration abolishes internal trade tariffs among member countries while simultaneously establishing a unified commercial policy with a common external tariff against non-member nations?

A
Free Trade Area
Customs UnionAnswer
C
Common Market
D
Preferential Trade Area

Answer

Customs Union

A Customs Union is specifically defined as an agreement among member states to eliminate internal tariffs and quantitative trade restrictions while adopting a shared, standardized commercial tariff structure (Common External Tariff) on goods imported from non-member countries.

Step-by-Step Solution

Identify the defining features of regional economic integration stages.

Recognize that integration progresses through distinct levels: Preferential Trade Area → Free Trade Area → Customs Union → Common Market → Economic Union.

Each stage adds specific obligations regarding internal trade barriers, external trade policy, factor mobility, and policy harmonization.

Analyze the conditions given in the question stem.

The stem specifies two key conditions: (1) internal tariffs among members are removed, and (2) a common external tariff (CET) is enforced against non-members.

Matching these two precise criteria identifies the exact stage of integration.

Match the conditions to the correct integration classification.

A Free Trade Area only satisfies internal tariff elimination, while a Customs Union satisfies both internal tariff elimination and the common external tariff requirement.

Therefore, the stage being described is a Customs Union.

Key Concept

Stages of Regional Economic Integration

Estimated Time:1m 0s

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