What is a free trade agreement (FTA) ?

Asked 17-Nov-2020
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What is a free trade agreement (FTA) ?

The FTA(Free trade Agreement) 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. According of the United States, the main goal of trade agreements is to reduce barriers to U.S. exports, protect United State interests competing abroad, and enhance the rule of law in the FTA partner country or countries.

The FTA(Free trade Agreement) or treaty is a multinational agreement according to international law to form a free-trade area between the cooperating states/countries. Whereas the FTAs(Free trade Agreement), the form of trade pacts, determine the tariffs and duties that countries impose on imports and exports with the goal of reducing or eliminating trade barriers, thus encouraging international trade. Like that the each agreements generally "The center on the chapter providing for preferential tariff treatment", yet they also mostly " they included clauses on the trade facilitation and rule-making in areas such as the investment, intellectual property, government procurement, technical standards. "

What is a free trade agreement (FTA) ?

The basis of Free Trade Agreements , whether we are looking to export our product or service, the U.S.(United State) government may have negotiated favorable treatment through an FTA to make it easier and cheaper for you. Acquire Free Trade Agreements(FTA) benefits for our products may need to more record-keeping but can also give our product a competitive advantage versus products from other countries. United State. The Free Trade Agreements are typically address a wide variety of government activity that affect your business: 

  • The Intellectual Property Protection: The Protection and enforcement of American-owned intellectual property rights in the FTA partner country.
  • The Product Standards: The ability for United State exporters to participate in the development of product standards in the FTA partner country.
  • Selling to the government: The ability for a United State company to bid on certain government procurements in the FTA partner country.
  • The Service companies: The ability for United State service suppliers to supply their services in the FTA partner country. 

Date Source :- Free Trade Agreement Overview   And FTAs