A free trade area is like a customs union except it members adopt a common external tariff structure.

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A free trade area is a group of countries that agree to eliminate trade barriers (tariffs, quotas, etc.) between themselves, but each member retains its own external tariff structure (their own tariffs on imports from non-members). In contrast, a customs union is a group of countries that eliminate trade barriers between themselves and also adopt a common external tariff structure (the same tariffs on imports from non-members).

A Free Trade Area Is Like a Customs Union Except