Question

Which of the following are the features of Customs Union?

1. It entails common currency in the Customs union
2. It has same policies for trade with the third country
3. Reduced trade barriers within the Union

Which of the above statements are correct

• A.
  1 and 3
• B.
  1 and 2
• C.
  2 and 3
• D.
  1, 2 and 3

Answer 1

The correct option is C

2 and 3
The main feature of the Customs Union is that the member countries have not only eliminated trade barriers and implemented free trade, but also established a common external tariff. Customs union need not have a common currency