Common external tariff: Difference between revisions

Revision as of 16:47, 1 May 2020

Revision as of 09:18, 7 December 2020

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*     Increasing the Intra-regional trade: guarantying the availability of more goods to be traded regionally.

* Prevention of trade diversion

*   The CET would provide durability in trade: traders would be able to make plans with the confidence that the tariff is constant. Policies affecting import tariffs can no longer be changed arbitrarily. This will ensure the attraction of more foreign direct investments.

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*       Increased production and productivity: with a large market to satisfy, production opportunities would increase.

*       Casting down smuggling: smuggling is oftenlyoften encouraged by the difference in tariffs, but when a region applies a common tariff, this will remove the necessity of buying smuggled products in regions which previously had high tariffs of the same goods.

'''<big>COSTS OF REGIONAL INTEGRATION</big>'''<ref name=":0" />

* Having a single market ensureensures a competitive environment for both consumers and markets which make monopolies existence hard. amongAmong the consequences of these unique markets is Thatthat ineffective companies market share will decrease and it may have to close down.

*   Some sectors of the national economy may undergo of negative impact  due to an increase on international competitivitycompetitiveness, which the main reason is the transition to single markets, specially companies that used to benefit of national market protection may have a hard time to deal against their more efficient peers. eventuallyEventually, if the enterprise go wrong on organizing their methods, it will fail.

==See also==