A Free Trade Area Differs from a Customs Union in That

A free trade area differs from a customs union in that

A) in a free trade area, members can establish their own tariff policies with respect to nonmembers
B) in a free trade area, the rules are binding on members, but in a customs union they are mere guidelines
C) a free trade area strives for low tariffs, but a customs union strives for high tariffs
D) a free trade area uses a standardized currency, but in a customs union each nation retains its own currency
E) the rules of a free trade area only apply to trade with nonmembers, but in a customs union the rules apply only to trade with members