Free Trade Agreements Provide Tariff Relief and Global Market Opportunities
Figuring out how to minimize the effects of tariff increases was probably not something Canadian and U.S. businesses thought they’d be spending time on this year. But as it turns out, tariff mitigation has become a top priority as a cloud of uncertainty has settled over the U.S./Canada trade relationship. As businesses look for relief, it’s worth exploring the many free trade agreements each country has in place.
While the specifics of each agreement vary, most eliminate tariffs and make it significantly easier to engage with consumers and suppliers across the globe. In Canada, 15 trade agreements facilitate access to more than 1.5 billion consumers across 50 different countries. This includes the 12-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which eliminates tariffs and allows Canadian businesses access to important markets including Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United Kingdom. Once fully implemented, 98% of Canadian exports will enter these markets duty free.
The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) also eliminates tariffs, and provides access to almost 450 million consumers across 27 countries.
In addition, the agreement that has been a cornerstone of U.S.-Canada trade, the United States-Mexico-Canada Agreement (USMCA) – called the Canada-United States-Mexico Agreement (CUSMA) in Canada – remains in effect.
U.S. businesses can take advantage of opportunities offered through the 14 FTAs currently in force that affect 20 different countries. These agreements offer duty-free access to 500 million consumers across important markets including South Korea, Columbia, Chile, and Australia.
Free trade agreements allow businesses to open their supply chains to new suppliers, expand outreach to consumers in different markets, and explore international procurement opportunities, among other benefits.
Integral to success though, is having an efficient logistics strategy for reaching those new markets. Without a workable plan that ensures on-time deliveries, a business will fail to meet new customers’ expectations, and could face inordinate costs that negate all the savings and benefits achieved through the FTA!
Logistics companies including Purolator have responded to this need by building international distribution networks, procuring required equipment, and investing in personnel with global trade expertise. Purolator can accommodate shipment deliveries to or from just about any location in the world. This means businesses in the United States and Canada that have long-relied on Purolator for cross-border service can also look to the company to manage their expansions into additional markets.
Our new white paper, “Free Trade Agreements Offer Supply Chain Options and Global Market Access for U.S. and Canadian Businesses” provides essential information for businesses looking to expand to new markets. In addition to learning about the many FTAs currently in force, businesses will gain insight into critical logistics considerations that need to be addressed in international shipping.
Why this paper is important:
- In 2025, Canadian and U.S. businesses find themselves caught in the crosshairs of a trade war, marked by an escalating series of tariffs and threats of tariffs.
- The impact has been felt by businesses on both sides of the border. Initially, goods entering the U.S. were subject to a 25% tariff, significantly raising costs for businesses. The U.S. later exempted goods that qualified under the USMCA/CUSMA from the tariffs.
- In July 2025, RBC reported that 91% of Canadian exports to the U.S. crossed the border duty-free. However, a lingering aura of uncertainty hangs over the trade relationship, as the countries attempt to negotiate a resolution.
- As a result, companies are looking for opportunities to mitigate the impact of the higher tariffs. An obvious source of relief may come from the 15 free trade agreements (FTAs) maintained by the Canadian government, and the 14 U.S. FTAs.
- This paper provides extensive information about these free trade agreements along with insight about the benefits of using an FTA, and the process for identifying eligibility.
- The paper also discusses the essential need for a comprehensive international logistics strategy.
What the reader will learn:
The white paper includes several important takeaways that include:
- FTA overview
- A listing and brief overview of all FTAs currently in force.
- Information about potential market access.
- Listings of top export/import commodities.
- Benefits of FTAs
- Discussion about the many benefits offered through FTAs.
- FTA Utilization
- Despite their many benefits, most FTAs are grossly under-utilized. The paper will discuss the reasons why shippers choose not to apply for benefits and offer insight about overcoming those challenges.
- The need for an international logistics strategy.
- An understanding of the need to prioritize logistics when considering an international expansion.
- An overview of Purolator’s global capabilities, and ability to offer end-to-end solutions throughout the world.
This white paper serves as an important resource for businesses looking for tariff mitigation options. As businesses consider expanding to international markets, they can turn to this paper for FTA guidance, along with information about critical logistics considerations.