What is Free Trade Agreement?
Free Trade Agreements (FTA) are conventions between friendly countries to reduce barriers for trade. The US, Mexico, and Canada are part of a trilateral agreement called USMCA (formerly NAFTA) which allows for duty free import and export within the 3 countries. A significant portion of the ingredients or parts of the goods must be manufactured in one of the countries party to the agreement. The rules that determine if the product can be considered made in on of the member countries are generally known as Rules of Origin and vary from agreement to agreement. Other examples of Free Trade Agreements include AUSTA (US and Australia), Israel–United States FTA, EU-Vietnam FTA, Eurasian Economic Union (multiple CIS countries).