why if I’m travelling between countries that have a free trade agreement I’m still subject to restrictions at customs at airports.
In: Economics
Imagine in country A they decide to tax cigarettes. In country B they do not. Then, country A and B sign a free trade agreement. This is not fair – the purpose of the free trade agreement was to allow trade without penalties for being foreign goods, but now in country A there is a penalty for being a domestic cigarette. The solution is that all cigarettes get taxed in country A, whether you buy them in country A or B. The only way to do that is to tax them when they cross the border.
TL;DR – if there is a tax on something, there is a tax on it. Playing games with where you bought it does not change that.
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