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" 3. The provisions of this Agreement shall not be construed to prevent: " (a) Advantages accorded by any contracting party to adjacent countries in order to facilitate frontier traffic; "(b) Advantages accorded to the trade with the Free Territory of Trieste by countries contiguous to that territory, provided that such advantages are not in conflict with the treaties of peace arising out of the Second World War. "4. The contracting parties recognize the desirability of increasing freedom of trade by the development, through voluntary agreements, of closer integration between the economies of the countries parties to such agreements. They also recognize that the purpose of a Customs union or of a free-trade area should be to facilitate trade between the parties and not to raise barriers to the trade of other contracting parties with such parties. " 5. Accordingly, the provisions of this Agreement shall not prevent, as between the territories of contracting parties, the formation of a Customs union or of a free-trade area or the adoption of an interim agreement necessary for the formation of a Customs union or of a free-trade area : Provided that: " (a) With respect to a Customs union, or an interim agreement leading to the formation of a Customs union, the duties and other regulations of commerce imposed at the institution of any such union or interim agreement in respect of trade with contracting parties not parties to such union or agreement shall not on the whole be higher or more restrictive than the general incidence of the duties and regulations of commerce applicable in the constituent territories prior to the formation of such union or the adoption of such interim agreement, as the case may be; " (b) With respect to a free-trade area, or an interim agreement leading to the formation of a free-trade area, the duties and other regulations of commerce maintained in each of the constituent territories and applicable at the formation of such free-trade area or the adoption of such interim agreement to the trade of contracting parties not included in such area or not parties to such agreement shall not be higher or more restrictive