Free Trade Agreements (FTA)

A free trade agreement (FTA) is a pact between two or more countries that agree to reduce barriers to trade between them. This can involve lowering or eliminating tariffs, quotas, and other restrictions on imports and exports. FTAs can also cover other areas, such as investment, intellectual property, and services. The goal of an FTA is to promote trade and investment between the participating countries, which can lead to increased economic growth and job creation. FTAs can also help to lower prices for consumers, as businesses have greater access to goods and services from other countries.

There are many different types of FTAs, including bilateral agreements between two countries, regional agreements between a group of countries, and multilateral agreements between many countries. Some of the most well-known FTAs include the TCA (Trade Cooperation Agreement) with the UK, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as well as agreements between the UK and Australia / UK and New Zealand signed post Brexit.

FTAs can be controversial, as some people believe that they can lead to job losses and lower wages in certain industries. However, proponents of FTAs argue that they ultimately benefit the economy as a whole by increasing trade and investment.

MGC have a detailed knowledge of trade agreements worldwide and interface regularly with the Department of Business and Trade to remain fully conversant as to what agreements are in place and how the terms of the agreements affect our clients’ businesses. It is important that UK businesses look to understand trade agreements in some depth, particularly in the UK as the more widespread our international agreements become, the more opportunity there is to simplify international shipments whilst also benefiting from optimised duty rates via export preference statements on commercial documentation.