The U.S. International Trade Administration (ITA) lists 14 free trade agreements (FTAs) between the United States and 20 partner countries. Together, these agreements give U.S. businesses access to hundreds of millions of consumers worldwide and provide opportunities to fortify supply chains with new suppliers and manufacturing partners. When used in conjunction with a logistics provider that can ensure seamless service to those new customers and partners, FTAs can be powerful tools in facilitating growth and expansion.
American businesses are most familiar with the United States-Mexico-Canada Agreement (USMCA), which took effect in 2020 and continues the three countries’ decades-long commitment to growing their trade relationships. Businesses rely on the agreement’s duty-free provisions to build cross-border supply chains and expand their retail footprints. The USMCA also includes intellectual property protections, which allow companies to operate without fear of copyright or patent infringements. Additional provisions incentivize industries including automotive and agriculture, facilitate customs clearance, and foster the growth of digital trade, among many others.
Key takeaways
USA’s Free Trade Agreements
As important as the USMCA certainly is, it is not the only free trade agreement available to U.S. businesses. A listing of current FTAs includes:
U.S. – Australia Free Trade Agreement (USAFTA)
- Implementation Date: 2005.
- Countries: United States and Australia.
- Market Access: Australian population — 27 million people.
U.S.-Bahrain Free Trade Agreement
- Implementation Date: 2006.
- Countries: United States and Bahrain.
- Market Access: Bahrain population – 1.6 million people.
U.S.-Chile Free Trade Agreement
- Implementation Date: 2004.
- Countries: United States and Chile.
- Market Access: Chilean population – 19.9 million people.
U.S.-Columbia Free Trade Agreement (Columbian Trade Promotion Agreement)
- Implementation Date: 2012.
- Countries: United States and Columbia.
- Market Access: Columbia population– 53.4 million people.
U.S. – Dominican Republic-Central America Agreement (CAFTA-DR)
- Countries: United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua.
- Implementation Dates:
- 2006: United States, Guatemala, El Salvador, Honduras, Nicaragua.
- 2007: Dominican Republic.
- 2009: Costa Rica.
- Market Access: 407 million people. [Guatemala (18.7 million), Nicaragua (7.1 million), Costa Rica (5.2 million), El Salvador (6.4 million), Honduras (11 million), Dominican Republic (11.5 million), United States (347 million).]
U.S. – Israel Free Trade Area Agreement (FTAA)
- Implementation Date: 1985.
- Countries: United States and Israel.
- Market Access: Israeli population – 9.5 million.
U.S. – Jordan Free Trade Agreement
- Implementation Date: 2001.
- Countries: United States and Jordan.
- Market Access: Jordanian population — 11.5 million.
U.S. – Korea Free Trade Agreement
- Implementation Date: 2012.
- Countries: United States and South Korea.
- Market Access: South Korean population – 51.7 million.
United States-Mexico-Canada Agreement (USMCA)
- This is by far the largest and most substantive U.S. trade agreement. The USMCA took effect in 2020 between the United States, Mexico, and Canada. Together, the three countries represent one-third of the world’s Gross Domestic Product, and comprise the world’s largest free trade region.
- To put the trade relationship in perspective, consider analysis by the Wilson Center: “In 2023, the total value of trade within North America exceeded US $1.88 trillion, equivalent to $3.6 million exchanged per minute and the result of double-digit growth since USMCA replaced NAFTA in 2020. This impressive increase has positioned Mexico and Canada as the top trading partners of the United States for the first time since 2002….”
- And critically important, products that qualify for USMCA benefits are exempt from the comprehensive – and significant — import duties on Mexican and Canadian imports announced by the United States during 2025.
U.S. – Morocco Free Trade Agreement
- Implementation Date: 2006.
- Countries: United States and Morocco.
- Market Access: Morocco population – 38.4 million.
U.S. – Oman Free Trade Agreement
- Implementation Date: 2009.
- Countries: United States and Oman.
- Market Access: Oman population – 5.5 million.
U.S. – Panama Trade Promotion Agreement
- Implementation Date: 2012.
- Countries: United States and Panama.
- Market Access: Panama population – 4.6 million.
U.S.-Peru Trade Promotion Agreement
- Implementation Date: 2009.
- Countries: United States and Peru.
- Market Access: Peru population – 34.6 million.
U.S.-Singapore Free Trade Agreement
- Implementation Date: 2004.
- Countries: United States and Singapore.
- Market Access: Singapore population – 5.9 million.
Why Use a Free Trade Agreement?
While the specifics of each free trade agreement vary, the International Trade Administration lists benefits that include:
- Reduction or elimination of tariffs on eligible goods.
- Intellectual property protection.
- Government procurement opportunities.
- Ability to participate in development of product standards within a FTA partner country.
- Fair treatment for U.S. investors within each FTA partner country.
- Expedited customs clearance opportunities.
- Harmonization of certain product standards and regulatory requirements.
Through FTAs, U.S. businesses have an opportunity to enter new markets, compete for customers, and enlist new supply chain partners. Any expansion to a new market though, requires considerable research and planning. A business must conduct market research, identify potential customers, develop a marketing plan, and critically important, prioritize an effective logistics strategy.
Logistics Efficiency and Customs Expertise – Essential Parts of an International Strategy
As U.S businesses consider expanding to FTA partner markets, logistics efficiency must be an essential part of the planning. Afterall, what good is the ability to engage in duty-free trade if a business has no reliable way of moving products into and out of that new market? Or if shipments are held at the border because of a failure to comply with customs requirements? Unfortunately, for too many businesses logistics planning has been an afterthought, often resulting in chaos, inefficiency, and excessive costs.
A better option would be to include an experienced international logistics provider, such as Purolator, in the early stages of the expansion planning. With Purolator on the team, a business can have confidence that shipments will move seamlessly, with the highest levels of efficiency, regardless of where in the world they need to be delivered. And with international trade management experts Livingston International now affiliated with Purolator, that expertise extends to customs and trade compliance.
Essential Purolator/Livingston capabilities include:
Global coverage
Global coveragePurolator maintains a worldwide distribution network that offers service to more than 220 countries and territories. This includes multiple hub facilities that serve as regional points of origins. Current locations include:
- Mainland China (20+ origins)
- Hong Kong
- Ho Chi Minh, Vietnam
- New Delhi, India
- London, United Kingdom
- Amsterdam, Netherlands
- Warsaw, Poland.
International shipments arrive at convenient locations throughout the United States or Canada including:
- Toronto
- Montreal
- Vancouver
- New York
- Los Angeles
- Chicago.
Purolator’s regional trade specialists work with each business to identify precise shipping needs and pinpoint the most efficient logistics solution.
Extensive service offerings
Extensive service offeringsPurolator offers an extensive portfolio of service options that accommodate each shipper’s unique needs. This ensures shipments arrive to/from their international destination when needed, at the appropriate service level. Purolator’s extensive offerings provide flexibility for international shipments and help businesses avoid having to pay for higher levels of service than is necessary.
Seamless integration into Purolator’s U.S. or Canadian distribution network
Seamless integration into Purolator’s U.S. or Canadian distribution networkUpon arrival in North America, shipments remain in Purolator’s network for final end delivery.
In Canada, smaller shipments enter the country’s leading courier network with capabilities that include:
- Comprehensive coast-to-coast coverage with service to all provinces and territories, and access to 100% of all postal codes. Purolator’s courier network extends to remote areas, including oil fields and other job sites that have no physical addresses, and facilities located in regions not accessible via highways.
- Extensive delivery options. A business can choose from Purolator’s extensive service options for a solution that meets its precise needs. These options include:
– Extensive same day/next day offerings for time-sensitive shipments.
– Extensive ground service options for less urgent deliveries.
– Saturday/Evening delivery capabilities.
– Mission critical air and freight services that ensure the fastest service possible.
– Larger shipments are funneled into Purolator’s freight network for LTL or TL service.
Within the United States, Purolator identifies the ideal solution for each customer, drawing from a large, established network of service providers located throughout the country. This allows Purolator to schedule pickups based on a customer’s preferred schedule, and guarantee service to any location within the United States.
International Trade and Customs expertise
International Trade and Customs expertiseAs beneficial as free trade agreements certainly are, they can be quite complicated and difficult to understand. This is especially true in determining if a product qualifies for reduced/eliminated tariffs, or when attempting to decipher customs requirements. Purolator helps manage the process with services that include:
- FTA/Customs expertise. Livingston International’s team of trade specialists have specialized knowledge about each country’s customs and regulatory requirements, and insight into current economic and geopolitical conditions. Trade specialists offer a range of services including consulting and planning, brokerage services, customs optimization, and business management.
- Internal trade specialists. Purolator also maintains an internal team of trade specialists who can review each shipper’s specific customs-related requirements and help ensure all documentation is completed and transmitted to the appropriate customs agency. Specialists also identify opportunities to facilitate compliance and reduce duty obligations, including FTA eligibility.
- Purolator Trade Assistant. Businesses can take advantage of Purolator’s online Trade Assistant tool to quickly determine customs-related information including:
– Tariff classification codes.
– Duty estimates (for U.S. bound shipments).
– Customs documentation requirements (for U.S. bound shipments).
Technology-based innovation
Technology-based innovationPurolator has invested in technology-based capabilities that enable global supply chain solutions. This includes the use of artificial intelligence for route optimization solutions that ensure shipments follow the most direct course. Another innovation, enhanced network visibility, allows Purolator to identify all options for a particular shipment, from which the ideal solution can be selected.
Digital commercial invoice
Digital commercial invoiceThe commercial invoice is a critical part of an international transaction, and a mandatory requirement by most international customs agencies.
Purolator helps shippers keep pace with a digital commercial invoice. The digital invoice captures all required information and can be seamlessly transmitted to all required customs agencies. This allows shippers to easily meet electronic filing requirements while also creating records of all documentation.
Shipment security
Shipment securityInternational cargo theft continues to be a source of concern worldwide, with criminals using increasingly sophisticated tactics to steal shipments. Purolator prioritizes shipment security throughout the entire shipping process. The company has made significant investments in fleet and facility security, including widespread use of technology-based security devices. In addition, all employees are thoroughly vetted and subject to continuous training, and specialized services are engaged for high-value shipments.
Customer service
Customer serviceInternational shipping invariably comes with questions about everything from shipping strategies to customs requirements to special service requests. Not surprisingly, good customer service is a critical priority for businesses that ship internationally. Purolator responds to this need with service that exceeds most customers’ expectations.
Each Purolator customer is assigned a client relations representative (CRR) who has complete visibility into the account and is easily accessible. A CRR is a part of the account team and knows each customer’s logistics strategy and schedule. Customers have their CRRs contact information and can easily call or text whenever an issue arises. Many times though, a CRR will notice a problem – and provide a solution – before the customer is even aware.
Free trade agreements can open doors around the world for savvy businesses. And Purolator can be there every step of the way, ensuring supply chain efficiency, technology-based solutions, customs compliance, and most of all, satisfied customers.