Which of the following is a characteristic of a customs union like the EU?

A customs union, such as the European Union (EU), is characterized by a group of countries that agree to eliminate tariffs and trade barriers among themselves while establishing a common external tariff against non-member countries. This arrangement allows member countries to coordinate their tariff policies with one another, ensuring a unified approach to external trade.

The coordination of tariff policies means that all member countries apply the same tariffs on imported goods from outside the customs union. This process streamlines trade and reduces the potential for trade diversion, which can arise when different member countries impose varying tariffs on goods.

This collective approach enhances the economic integration of the member states and promotes trade within the union while protecting the group from external competition through the common external tariff. The collaboration in tariff policies is essential for the functioning of the customs union, providing both benefits and stability in international trade relations.