Treaties between countries that are designed to reduce barriers to trade and investment, and to facilitate stronger commercial ties between these countries. FTA usually involves lowering duty rates for shipments, provisions for intellectual property rights, environmental protection, dispute resolution, etc.
For the United States, FTAs serve three primary goals:
- Lowering export barriers and making it easier for US businesses to sell abroad
- Protecting US interests, ensuring fair competition for American companies in foreign markets
- Promoting transparent and predictable trade policies in partner countries
The US currently has 14 FTAs with 20 countries.
Examples of the US FTAs
- United States-Canada-Mexico Trade Agreement (USMCA, formerly known as NAFTA)
- United States-Australia Trade Agreement (AUSTA)
- Israel-United States Free Trade Agreement
- United States-Korea Free Trade Agreement
- Central America Free Trade Agreement, Dominican Republic (CAFTA-DR)
- United States-Panama Free Trade Agreement