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<p>originating in third countries. Such differentiation serves two purposes: (1) it allows the importing party to determine whether a product is eligible for preferential treatment under the FTA at hand; (2) it avoids the scenario where exports from third countries enter the FTA via the member with the lowest external tariff (i.e., trade deflection). This explains why in a customs union, there is no need to establish rules of origin among its contracting parties - members of a customs union are required to maintain a <a href="page.php?w=common_external_tariff">common external tariff</a></p><p>
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