Free Trade Agreement Center

A free trade agreement (FTA) is an agreement between two or more countries in which countries agree, among other things, on certain obligations that affect trade in goods and services, investor protection and intellectual property rights. For the United States, the main objective of trade agreements is to reduce barriers to U.S. exports, protect U.S. competing interests abroad, and improve the rule of law in FTA partner countries. Halaman terkait mengenai FTA Center dapat dilihat pada portal berikut ini: ditjenppi.kemendag.go.id/index.php/berita/video/detail/fta-center The FTA toolkit allows for parallel comparative analysis of free trade agreements. It compares certain chapters of free trade agreements, such as market access for goods, trade facilitation, trade aid, government procurement and dispute settlement. First, the customs duties and other rules which are maintained in each of the signatory parties to a free trade area and which are applicable at the time of the establishment of such a free trade area shall not be higher or more restrictive for trade with non-parties to such a free trade area than customs duties and other rules which existed in the same signatory parties before the establishment of the free trade area. In other words, the creation of a free trade area for preferential treatment among its members is legitimate under WTO law, but parties to a free trade area should not treat non-parties less favourably than before the establishment of the area. A second requirement of Article XXIV is that tariffs and other barriers to trade must essentially eliminate all trade within the free trade area. [10] Free trade agreements contribute to the creation of an open and competitive international market. Since WTO members are required to submit their free trade agreements to the Secretariat, this database is based on the most official source of information on free trade agreements (in the WTO language known as regional trade agreements). The database allows users to obtain information on trade agreements that have been notified to the WTO by country or by theme (goods, services or goods and services).

This database provides users with an up-to-date list of all agreements in force, but those that have not been notified to the WTO may be lacking. Reports, tables and graphs containing statistics on these agreements and, in particular, the analysis of preferential tariffs are presented. [26] It is also important to note that a free trade agreement is a reciprocal agreement, which is permitted by Article XXIV of the GATT. Autonomous trade regimes for developing and least developed countries are authorized by the decision adopted in 1979 by the signatories to the General Agreement on Tariffs and Trade (GATT) on differential and more favourable treatment, reciprocity and wider participation of developing countries (hereinafter referred to as the “enabling clause”). This is the WTO`s legal basis for the Generalised System of Preferences (GSP). [13] Free trade agreements and preferential trade regimes (as indicated by the WTO) are considered to be most-favoured-nation derogations. [14] A free trade agreement is a treaty between two or more countries to facilitate trade and remove barriers to trade. It aims to completely eliminate tariffs from day one or over a number of years. Unlike a customs union, parties to a free trade agreement do not have common external tariffs, which means that they apply different tariffs and other directives to non-members. This feature allows non-parties to obtain footsp preferences under a free trade agreement by entering the market with the lowest external tariffs. Such a risk requires the introduction of rules for determining which originating products are eligible for preferences under a free trade agreement, a need that does not arise in the context of the creation of a customs union.

[20] In principle, a minimum volume of processing is required, resulting in a “substantial transformation” of the goods so that they can be considered originating. . . .

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