XXIV	Territorial Application - Frontier Traffic - Customs Unions and Free-trade Areas
	1.	Extends this Agreement to customs areas of the Contracting Parties.
	2.	Defines a customs territory as "any territory with...separate tariffs or other regulations of commerce" for its trade "with other territories."
	3.	Assures Contracting Parties that this Agreement will not prevent advantages granted between "adjacent countries in order to facilitate frontier traffic."
	4.	Recognizes the "desirability of increasing freedom of trade" through customs unions and free-trade areas, the purpose of which is to "facilitate trade between the constituent territories and not to raise barriers to the trade of other contracting parties."
	5.	Permits the formation of customs unions and free-trade areas, provide that:
	(a)	a customs union does not lead to trade restrictions for nonparticipants which are "on the whole...higher or more restrictive than...before";
	(b)	a free-trade area does not lead to more restrictive trade on the part of any of the participants; and
	(c)	any "interim agreement" to set up a custom union or free trade area shall include an implementation plan and schedule with a reasonable time frame.
	6.	Requires a compensatory adjustment under Article XXVIII for any increase in trade restriction when any CP joins a customs union.
	7(a)	Requires notification of decisions to join a customs union and free-trade area.
	7(b)	Allows Contracting Parties collectively to require modifications of CU/FTA timetables.
	7(c)	Requires notification and willingness to consult in the case of modifications to interim agreements.
	8.	Defines:
	(a)	A customs union: a single customs territory (i) in which trade restrictions are "are eliminated on substantially all the trade" between members, and (ii) "substantially the same" trade restrictions are applied to nonmembers;
	(b)	A free-trade area: territories in which trade restrictions "are eliminated on substantially all the trade" on products "originating in" the territories.
	9.	CU/FTA formation should not affect other preferences existing under this Agreement without negotiation.
	10.	Allows a 2/3 vote to approve CU/FTA proposals which "do not fully comply" with the requirements of this Article.
	11.	Allows "special arrangements" for trade relations between India and Pakistan.
	12.	Requires each CP to ensure compliance with this Agreement "by the local and regional governments and authorities within its territories."