Free Trade Agreements
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What are Free Trade Agreements (FTAs), and what do they impact?
This article informs you what Free Trade Agreements are, and how they might impact trade that you conduct internationally.
What is an FTA?
Basically, FTAs are agreements made between countries that are intended to reduce/eliminate trade barriers across international borders. This doesn’t mean however, that they come without regulations and oversight. A nation might allow free trade with another nation that forbids the import of specific things. These might include:
- Drugs not approved by its regulators
- Unvaccinated animals
- Processed foods that don’t meet its standards.
For example, the United Kingdom signed an FTA with the EU during the Brexit transition period, known as the EU-UK Trade and Cooperation Agreement (TCA).
Does the presence of FTAs with other countries affect my business?
Yes! If the UK has an FTA with a country you’re trading with, this can affect your documentation obligations, or even make you eligible for duty/tariff reductions. This has to do with declaring origin.
Certificates of Origin
Anyone exporter/importer should be aware of the need to declare the origin of goods (If you’re not, check out our article on this here). If Certificates of Origin (COs) are your preferred method of declaring origin, then you may be eligible to receive a preferential COs. Preferential COs certify that goods in a consignment are eligible for reduced tariffs or exemptions. Consequently, this is decided based upon the existence of a preferential FTA between the UK and the country you’re trading with.
To apply for a Certificate of Origin, you can contact us at [email protected]