Despite all these positive developments, there are some serious problems stemming from the structure of the
customs union agreement.
"Over the past few years, GCC countries made many breakthroughs towards the establishment of the GCC
Customs Union. The top breakthroughs were the launch of the Common Customs Tariff System on imports, the application of the unified customs law, and the removal of many customs and non-customs restrictions on the inter-trade movement.
In March, a top GCC official said the pending issues need to be resolved to reach a final deal on the
customs union in line with an agreed timetable this year.
Kuwaiti Finance Minister Mustafa Al Shamali said that his GCC counterparts had agreed to implement the electronic system, and he played down the remaining obstacles to a
customs union.
The EU and Turkey are linked by a
Customs Union agreement, which came in force on 31 December 1995, pursuant to the 1963 EU-Turkey Association Agreement, which aims at promoting trade and economic relations.
However, country A can choose to make an appropriate non-preferential tariff reduction rather than to join the
customs union. If country A reduces the non-preferential tariff from T to T', the price of good X in country A will be lowered from [P.sub.1] to [P'.sub.2] as in the
customs union.
In the case of the
customs union we consider three cases.
Speculation that Theresa May could be forced into accepting a
customs union arrangement has mounted since her defeat in the House of Lords last week, prompting reports that senior Brexiteers including Boris Johnson would not accept any dilution of her "red line" on withdrawal.
House of Commons library analysis commissioned by Labour indicated the decision to rule out a new
customs union with the European Union could cost the UK economy PS24 billion by 2033.
Britain has ruled out any form of
customs union with the European Union after Brexit, according to a source in Prime Minister Theresa May's Downing Street office.
A hard Brexit without the protection of the single market and the
customs union poses an economic threat to Britain which is "unparalleled in recent times", the SNP Westminster leader has warned.
BRITAIN will quit the
customs union when we leave the EU in March 2019.
