Free Trade Agreement Goods

Free trade agreements (FTAs) are bilateral or multilateral agreements between countries that aim to eliminate trade barriers and encourage economic cooperation. These agreements create the opportunity for businesses to expand their markets and increase profits by exporting goods duty-free or with reduced tariffs. In this article, we`ll focus on the benefits and requirements of free trade agreement goods.

What are Free Trade Agreement Goods?

Free trade agreement goods are products or items that are eligible for preferential tariff treatment under a free trade agreement. Tariff treatment refers to the reduction or elimination of import taxes, which makes it more affordable for businesses to import goods from a particular country. To qualify as FTA goods, a product must meet certain criteria:

1. The product must originate from an FTA partner country and meet the rules of origin criteria set in the agreement. The rules of origin criteria are designed to ensure that only products that are produced or substantially transformed within the FTA partner countries qualify for tariff benefits.

2. The product must be included in the list of FTA goods set out in the agreement. Each FTA has a specific list of products that are covered by the agreement.

Benefits of Free Trade Agreement Goods

The benefits of free trade agreement goods are numerous. By exporting goods under an FTA, businesses can realize the following advantages:

1. Reduced or eliminated import tariffs: When the FTA is in place, businesses can export goods to partner countries without paying tariffs or with a reduced tariff. This makes it more affordable for businesses to sell their products in the partner country and increases their competitiveness.

2. Improved market access: FTAs create new markets for businesses and expand existing ones. This can help businesses to increase their customer base and grow their sales.

3. Increased productivity: By exporting goods under an FTA, businesses can buy and import raw materials and inputs at a lower cost. This can lead to increased productivity and lower production costs.

Requirements for Free Trade Agreement Goods

To export products as FTA goods, businesses must meet certain requirements. Some of the key requirements include:

1. Origin Declaration: To prove that a product is eligible for FTA treatment, businesses must provide an origin declaration. The origin declaration is a document that certifies that the product meets the rules of origin criteria. The origin declaration must be completed by the exporter and must be signed by a designated authority.

2. Record Keeping: Businesses must maintain an accurate record of their FTA goods, including the origin declaration and supporting documents. These records must be kept for a specified period, typically five years after the date of export.

3. Compliance: To export goods as FTA goods, businesses must comply with the terms of the agreement. This includes meeting the rules of origin criteria, providing accurate origin declarations, and maintaining accurate records.


Free trade agreement goods provide businesses with numerous benefits, including reduced import tariffs, improved market access, and increased productivity. However, to export goods as FTA goods, businesses must meet certain requirements, such as meeting the rules of origin criteria, providing an accurate origin declaration, and maintaining accurate records. By exporting goods as FTA goods, businesses can grow their sales and increase their competitiveness in the global market.