FTA
Also known as: Free Trade Agreement
A reciprocal treaty between two or more countries that reduces or eliminates tariffs on qualifying goods.
A Free Trade Agreement (FTA) is a bilateral or plurilateral treaty under which signatory countries reduce or eliminate tariffs on goods that satisfy the agreement's Rules of Origin. Modern FTAs typically cover services trade, intellectual property, investment, government procurement, and dispute settlement alongside the tariff schedule. Goods claim FTA preferential rates by filing a Certificate of Origin or Statement on Origin. Major plurilateral FTAs include USMCA, CPTPP, RCEP, AfCFTA, and the EU-Korea FTA.