In terms of the depth and scope of trade, a free-trade area usually is a more comprehensive agreement concerning free trade than the agreement associated with a customs union.

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A customs union typically involves deeper integration than a free-trade area because it not only eliminates tariffs between member countries but also adopts a common external tariff on imports from non-member countries, leading to a higher level of trade policy coordination.

In Terms of the Depth and Scope of Trade, a Free-Trade