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Top 4 must - know international free trade agreements for business

R

Rachel Ng

New Member
One of the most interesting topics that an enterprise could grab some key highlights for business. Free trade agreements are agreements signed by two or more countries to reduce or eliminate the barriers in terms of transportation and tariffs. It now has become extremely important to maintain international trading relationships and improve global value chains. Providing fair conditions of competition, Creating a stable and predictable market, Improving production cost efficiency, Increasing purchasing power are four key perks of what FTA could promote the ability for your company.

Here are 4 things that you must know about international free trade agreements around the world

Comprehensive and Progressive Agreement for Trans-Pacific Partnership’s a multilateral free trade agreement with 11 member countries including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The agreement was initially The Trans-Pacific Partnership (TPP) and included the US. After the withdrawal of the US, CPTPP was signed and entered into force on 30 December 2018.

Regional Comprehensive Economic Partnership (RCEP) is the biggest trading bloc up till 2021, which includes the participation of ASEAN and its five major trade partners, accounting for 30% of the global population. The partners are Australia, China, Japan, Korea, and New Zealand. The agreement was signed on 15 November 2020 at a virtual ASEAN conference hosted by Vietnam for a period of up to 20 years.

North American Free Trade Agreement (NAFTA) is a trilateral free trade agreement signed between the United States, Canada, and Mexico. The agreement was implemented in 1994 with conditions set out to reduce most tariffs in the trade zone. NAFTA is considered as a huge free trade agreement because it was joined by three major economic powers.

ASEAN Free Trade Area (AFTA) was signed on 28 January 1992 in Singapore with the participation of Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand. Vietnam, Laos, Myanmar, and Cambodia joined in later, which raised the number of AFTA to 10 members. The agreement is one of the largest free trade agreements with the coordination with its large partners which are Asia-Pacific Economic Cooperation, East Asia Summit, and Regional Comprehensive Economic Partnership.

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