Is Your Company Capitalizing on Free Trade Agreements (FTAs)?
The primary purpose of free trade agreements (FTAs) is to lower or remove tariff barriers that hamper the active trade of goods and services between countries and to protect intellectual property rights. The U.S. alone has more than 12 FTAs, and there are more than 400 regional trade agreements worldwide; even so, it appears that many companies fail to leverage this opportunity to open up foreign markets to their products. Based on a study by KPMG International and Thomson Reuters, fully 70% of companies involved in international trade do not utilize FTAs at their disposal. This is alarming considering the ongoing, difficult negotiations that countries participate in to improve trade relations, but the reality is that there are a variety of complex reasons companies give for not leveraging FTAs.