FREE TRADE AGREEMENTS: NAFTA AND OTHERS

Free Trade agreements are contractual arrangements between states concerning their trade relationships. They may be bilateral or multilateral, that is, between two states or more than two states. Free trade agreements (FTA's) result in lower tariff barriers between member states than those allowed to non-member states.

The United States currently has several free trade agreements in place. In 1984, a trilateral trade agreement between the United States, Canada and Mexico (NAFTA - North American Free Trade Agreement) was implemented. Since obtaining trade promotion authority in 2003 the U.S. Trade Representative has begun an aggressive program to negotiate other bilateral and regional free trade agreements. 

FREE TRADE IS NOT FREE

SAVINGS ARE AVAILABLE IF YOU ADHERE TO
THE RULES OF A FREE TRADE AGREEMENT

FREE TRADE REGULATIONS ARE COMPLEX

All of these free trade agreements have the potential to lower the costs of imported goods while expanding export markets for American products. The opportunities are available if the regulations are understood and adhered to. To take full advantage of these opportunities you must strictly comply with new rules and regulations that should be implemented with the free trade agreements.

NAFTA - North American Free Trade Agreement

On January 1, 1994, a trilateral trade agreement between the United States, Canada and Mexico was implemented. This is called the North American Free Trade Agreement (NAFTA). NAFTA spells opportunity because qualifying goods have lower duty rates. However, in order to take full advantage of this free trade agreement, you must strictly comply with the rules and regulations.

COMPLIANCE WITH THE REGULATIONS

REGIONAL VALUE CONTENT / TARIFF SHIFT

HUGH SAVINGS POTENTIAL FROM FREE TRADE AGGREEMENTS

NAFTA certificate of origin
For goods to qualify for preferential duty treatment they must meet a specified percentage of North American content, undergo a tariff shift or both. These rules of origin and the preparation of a NAFTA certificate of origin (to substantiate that the product qualifies) make compliance with the regulations time consuming and tedious. It is also necessary to fully understand the Harmonized Tariff Schedule in order to properly classify products

"WHY WORRY ABOUT FREE TRADE AGREEMENTS?"

• To avoid penalties from foreign Customs authorities for inaccurately stating content origin of goods shipped across borders.
  
  
• To gain sales and tariff benefits for goods with non-originating content that still may qualify for tariff reduction under a Free Trade Agreement.
  
  
• To ensure that you have gained appropriate tariff reductions through the phase-in of Free Trade Agreement reductions.
  
  
• To protect your customer, by making certain that your customer has an accurate NAFTA certificate of origin.     

Why use ITM for you Free Trade Agreement support?

• International Tariff Management (ITM) has the technical expertise and a dedicated staff.
  
  
• We concentrate on Free Trade Agreements and focus on personal service.
  
  
• We provide our service at a very competitive rate.
  
  
• We stay current with the regulations to make sure our clients are compliant.
  
  
• We are a hands-on company that does the detailed work of accumulating data allowing your staff to attend to their regular business.
  
  
• We have provided analysis, support and NAFTA certificate of origin preparation for clients since the inception of NAFTA.
  
  
• We provide a full service program including seminars, training courses and the actual NAFTA certificate of origin preparation.
  
• We can provide full outsourcing capabilities where we become your in-house Free Trade Agreement support group.
  
  • Other Free Trade Agreements