ABSTRACT
This chapter is devoted to a close analysis of the changes in the geographical as well as the product structure of the internal and external trade of the European Union (EU) under the influence of integration. It describes the theoretical way how markets evolve when barriers to movement are torn down. The chapter also describes the way in which the EU has realised the integration of the markets for manufactured goods of its member countries. Tariffs, or customs duties or import duties are sums levied on imports of goods, making the goods more expensive on the internal market. Such levies may be based on value or quantity. At the start of the EU9 most tariffs were lower than at the time of creation of the EU6; besides, a profound need for economic restructuring was recognised, energy prices were on a steep increase, trade balances were adversely affected and new protectionism was becoming generally accepted.
