free trade area
customs territories of two or more states which have granted each other reciprocal trade advantages involving the removal of customs duties and other trade barriers on trade between them, each state remaining free to impose customs duties and other trade restrictions on goods originating outside the free trade area, entity formed by the Customs territories of an association of States and having in its ultimate state the following characteristics:
- the elimination of Customs duties in respect of products originating in any of the countries of the area,
- each State retains its Customs tariff and Customs law,
- each State of the area remains autonomous in matters of Customs and economic policy,
- trade is based on the application of rules of origin, to take account of the different Customs tariffs and prevent deflection of trade,
- the elimination of restrictive regulations of commerce within the free trade area