A Static Analysis of The Customs Union Issue
the dynamic economics of customs unions looks at the effects of terms of trade, economies of scale, increased competition, rapid spreading of technology along with transport costs and geographical spread along with administrative economies and greater collusion between companies leading to higher prices .
These arguments in relation to welfare are very difficult to assess, as it cannot be accurately determined what a countries position would have been like had it not joined the union in the first place, what about future attitudes, future policies and world events, or distinctly political areas like greater political influence or loss of sovereignty. Many of these issues are discussed by politicians and cannot be accurately quantified in economic theory.
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