FTA (Free Trade Agreement)

What is an FTA (free trade agreement)?

An FTA agreement is an agreement made between two or more countries designed to minimize barriers to trade in an effort to increase trade between the participating countries. FTAs typically allow companies to buy and sell across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchanges.

How do you claim FTA benefits?

Lower duties don't apply automatically. Your goods must meet the agreement's rules of origin, which often depend on where the product was made, where its materials came from, or how much value was added in a member country. You'll usually need a certificate or statement of origin, and your customs broker files the claim at entry.

What are examples of FTAs?

Examples include the United States-Mexico-Canada Agreement (USMCA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Each agreement has its own product coverage, tariff schedule, and origin rules.

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