Customs unions of commodity exporting countries: advantages and problems

Russia - 10 April 2018

Trade topics: Regional Integration

A descriptive analysis of foreign trade statistics of developing countries shows that among the customs unions (CU) member states, the majority are primarily exporters of commodities (their share in exports is above 50%), while countries whose exports are dominated by processed products prefer to conclude free trade agreements. It is well known that raw materials and fuel dominate in the export of most countries of the Eurasian Economic Union (EAEU). The paper discusses the rationale of the choice of CU for resources-exporting countries and other factors which influenced the choice of the form of Eurasian integration.

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