Free Trade Agreement Overview Selling to U.S. Free Trade Agreement (FTAs) partner countries can help your company to enter and compete more easily in the global marketplace through reduced trade barriers. U.S. FTAs address a variety of foreign government activities that affect your business: reduced tariffs, stronger intellectual property protection, opportunities for U.S. exporter input in the development of FTA partner country product standards, fair treatment for U.S. investors, enhanced opportunities to compete for foreign government procurements, and opportunities for U.S. service companies. Show
Click here to download video [12MB]What are Free Trade Agreements?A Free trade Agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics. For the United States, the main goal of trade agreements is to reduce barriers to U.S. exports, protect U.S. interests competing abroad, and enhance the rule of law in the FTA partner country or countries. Currently, the United States has 14 FTAs with 20 countries. FTAs can help your company to enter and compete more easily in the global marketplace through zero or reduced tariffs and other provisions. While the specifics of each FTA vary, they generally provide for the reduction of trade barriers and the creation of a more predictable and transparent trading and investment environment. This makes it easier and cheaper for U.S. companies to export their products and services to trading partner markets. Key Benefits of Free Trade AgreementsIf you are looking to export your product or service, the United States may have negotiated favorable treatment through an FTA to make it easier and cheaper for you. Accessing FTA benefits for your product may require more record-keeping but can also give your product a competitive advantage versus products from other countries. U.S. FTAs typically address a wide variety of government activities that affect your business: FTAs are treaties between two or more countries designed to reduce or eliminate certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between participating countries. Australia has 16 FTAs with 28 countries. Australia is negotiating new bilateral and regional FTAs. More about free trade agreements
Why are FTAs good for Australia?Free trade agreements help boost economic and job growth in Australia, and deliver new growth opportunities to big and small Australian businesses through greater trade and investment. Australian consumers and businesses also benefit from improved access to an wider range of competitively priced imported goods and services. Read more about the benefits of FTAs. Which countries does Australia have FTAs with?Australia has 16 FTAs and working toward increasing the number of FTAs in force.
FTAs and the World Trade OrganizationAs a member and strong supporter of the WTO, Australia upholds legal trade disciplines in relation to its FTAs to ensure they are of the highest quality and support the international trading system. The Australian Government considers these standards as essential to all potential FTA participants and will not enter into trade agreements that fall short of the benchmarks set by the WTO or the benchmarks we set ourselves. Under WTO rules FTAs must:
This ensures Australia's FTA are comprehensive in their scope and result in the best possible outcomes for Australia. How can businesses take advantage of Australia's FTAs?Taking advantage of our FTAs with other countries offers numerous benefits for businesses, including those businesses looking to import and export. Find out how to use FTAs. ContactsEmail: [email protected] Phone: +61 2 6261 1111 Key reportsAustralian Trade Liberalisation: Analysis of the Economic Impacts – a 2017 Centre for International Economics (CIE) report on the benefits of trade liberalisation for Australia. Free Trade Agreement Utilisation Study – a PricewaterhouseCoopers (PwC) report finds Australia's North Asian FTAs have high utilisation rates for merchandise trade. Related publicationsGovernment Response to the Joint Standing Committee on Foreign Affairs, Defence and Trade, Trade Sub-Committee report: From little things big things grow: Supporting Australian SMEs go global What is GATT and NAFTA?Much has been written about two important international trade agreements, the General Agreement on Tariffs and Trade, commonly known as GATT, and the North American Free Trade Agreement (NAFTA). Yet consumers remain in need of more education about these agreements and the effects they can have on us everyday.
Which of the following is an agreement among nations to reduce trade barriers?A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
What is the free trade agreement known as?A free-trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating states. There are two types of trade agreements: bilateral and multilateral.
What is the meaning of GATT?The General Agreement on Tariffs and Trade (GATT) covers international trade in goods. The workings of the GATT agreement are the responsibility of the Council for Trade in Goods (Goods Council) which is made up of representatives from all WTO member countries.
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