For European countries, the imbroglio of bilateral agreements has become so unbearable that in 1997 they resorted to the pan-European system of cumulation (PEC) and stretched it to Turkey in 1999. The system reconciled the various bilateral pacts into a multilateral agreement. Since 1999, a coat that is 50% Hungarian, 30% Polish and 20% Turkish has been counted 100% at European level. The effectiveness of a customs union is measured by the creation of trade and the reorientation of trade. Business creation takes place when more efficient members of the union sell to less efficient members, which leads to a better allocation of resources. Customs unions lead to better economic integration and political cooperation between nations and the creation of a common market, a monetary union and a fiscal union. Saggi and Yildiz (2010) also envision a three-country negotiating model in which governments can negotiate ENAs and multilateral agreements. The negotiating process is as follows: governments simultaneously designate FTA partners and a free trade agreement will be concluded if the announcements agree; When a government designates the other two countries, it will be interpreted as a proposal for a multilateral agreement and, if all governments propose a multilateral agreement, it will be implemented. An essential feature of the model is that international transfers are not available. Saggi and Yildiz study the implications of a rule that prohibits free trade agreements by comparing a game in which free trade agreements are allowed to a game in which they are not. If free trade agreements are banned, it is possible that in balance, two countries agree to liberalize trade, while the third does not: this result is skewed in favor of the country that makes free trips, but is efficient pareto. The result of Saggi and Yildiz should therefore be interpreted as meaning only that free trade agreements might be necessary to achieve global free trade and not that free trade agreements might be necessary to achieve global effectiveness. Here you will find all tariffs, customs procedures and formalities, product requirements for the EU market, for each product, including any special conditions granted under trade agreements.
During the transitional period for Brexit, which runs until 31 December 2020, the Uk remains in the customs union. .