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What are the major differences between a free trade area and a customs union?

高老师2年前 (2024-03-26)国际商务英语(05844)17

What are the major differences between a free trade area and a customs union?

Members of a free trade area removes barriers to the flow of goods and services among themselves while each member still adopts its own policy as regards to trade with outsiders. However, a customs union adopts the same trade policy for all the members toward countries outside their organization in addition to abolishing trade barriers among themselves.

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