How do countries within a Free Trade Area manage their external trade policies?

In a Free Trade Area, countries collaborate to eliminate barriers to trade among themselves, such as tariffs and quotas, but they maintain the authority to determine their own external trade policies regarding nations that are not part of the Free Trade Area. This means that each member country can negotiate and implement its own trade agreements, tariffs, and regulations with third-party countries. This independence allows countries within the Free Trade Area to tailor their external trade strategies to their specific economic interests and needs without being constrained by a collective policy.

In contrast, harmonizing all policies into one would imply a level of centralization that is not characteristic of Free Trade Areas, where the focus is on internal free movement rather than an overarching external policy. Adopting a single external tariff would be a feature of a Customs Union, where members establish a common trade policy towards non-member countries. Lastly, regulating trade through strict quotas would limit trade among the member countries rather than promote it, which contradicts the fundamental purpose of a Free Trade Area.