Which of the following would be considered a free trade area with the additional feature of a common external tariff on products originating from outside the union?

A) Customs importation union
B) Free trade union
C) External tariff union
D) Customs union
E) International tariff union

Customs Union

An agreement between two or more countries to remove trade barriers and reduce tariffs among them, and to establish a common external tariff against other countries.

Common External Tariff

A uniform tariff rate adopted by a customs union or common market on imports from countries outside the union.

Free Trade Area

A region where member countries have agreed to reduce or eliminate trade barriers, such as tariffs and quotas, among themselves.