Both free-trade areas and customs unions have a common external tariff.

Name: Both free-trade areas and customs unions have a common external tariff.
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Free-trade areas allow for the free movement of goods among member countries without tariffs but do not have a common external tariff. Customs unions, on the other hand, not only allow for free trade among member countries but also adopt a common external tariff on imports from non-member countries.

Both Free-Trade Areas and Customs Unions Have a Common External