A free trade area deals with the elimination of customs duties and the measures applied to Member States when they trade with each other. This means that there are no common guidelines applicable to all members and that each country in the free trade area collects its own customs duties and quotas. Both the free trade area and the customs union deal with tariffs and trade. However, they differ in many respects. Georgina Wainwright-Kemdirim, special advisor on trade and gender in the sector, says the response of Canada`s trading partners to the agreements has been „overwhelmingly positive.“ While some question whether trade agreements are the place to tackle social problems, Canada responds that the approach also makes economic sense. „Studies show the value and results of increasing women`s participation in trade,“ she explains. Among the most important concepts of free trade agreements and free trade areas are: free trade agreements make trade more accessible to SMEs, Turley explains. For example, companies exporting goods may benefit from a tariff advantage that makes their products more competitive. A free online tool called Canada Tariff Finder can help businesses determine how each FTA partner can classify their goods and an applicable prime rate. That is why the international trade rules of free trade agreements must be used strategically. These agreements set the reduction and elimination of customs duties for all types of goods, which has a considerable impact on business.
Tags: Trade agreement, EU trade policy, consumers, quality, diversity Canada is the only G7 country to have free trade agreements with all other G7 countries. Current agreements include the CUSMA, the Canada-EU Comprehensive Economic and Trade Agreement (CETA), the European Free Trade Association (EFTA) with Iceland, Liechtenstein, Norway and Switzerland, as well as agreements with Chile, Colombia, Costa Rica, Honduras, Israel, Jordan, Korea, Panama, Peru and Ukraine. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is now in force between Canada, Australia, Japan, Mexico, New Zealand, Singapore and Vietnam. Global Affairs Canada has developed pages on how CETA and the CTPPP benefit SMEs. These pages offer an abundance of resources and practical instructions for businesses….