Common External Tariff

Meaning of Common External Tariff

In the context of Europe, and according to A Dictionary of Law, the following is a definition of Common External Tariff : (CEl)

The tariff of import duties payable on certain goods entering any member state of the European Union from non-EU countries. The CET prevents the distortion of trade that would occur if member states set their own import duties on products coming into their state from outside the EU. The Tariff contributes to the Common Budget of the EU, from which subsidies due under the *Common Agricultural Policy are paid.

Common external tariff in Global Commerce Policy

In this regard, a definition of this issue is as follows: the uniform tariff rates applied by the members of a customs union against non-members. Members of a customs union agree to eliminate or phase out all tariffs among themselves. The entries on trade policy are here. At the same time, they replace their individual tariffs with a single tariff applied to third countries. Membership of a customs union may therefore entail an unchanged, higher or lower tariff by individual members on a given product. The entries on trade policy in the Encyclopedia are here. Under WTO rules, the resulting changes may not be used to increase the level of protection overall. Free-trade areas do not have a common external tariff.[1]