The USMCA and Other Free Trade Agreements [Webinar Recap]

Are you looking to boost your company’s competitiveness in the global market? Understanding free trade agreements (FTAs) could be the key to unlocking new opportunities and reducing costs for your exports. 

Recently, we hosted a webinar, The USMCA and Other Free Trade Agreements, featuring international trade expert Robert P. Imbriani. For those who couldn’t attend, we’ve put together this quick recap of some key highlights. But remember, this is just a taste—the full webinar recording is packed with even more insights. And if you missed the live session, you can still watch the recording here. 

Why Free Trade Agreements Matter

FTAs like the United States-Mexico-Canada Agreement (USMCA) can significantly impact your bottom line by:

1. Lowering costs for your foreign customers
2. Increasing your products’ competitiveness in international markets
3. Providing preferential duty treatment for eligible exports

However, navigating these agreements can be complex. Without a thorough understanding, your company might face delays, lost opportunities and compliance issues.

FTA Tips From the Webinar

• Free Trade Agreements Aren’t Always “Free”: Despite the name, FTAs are more accurately described as preferential trade agreements. Only goods meeting specific rules of origin qualify for benefits.
• The Importance of Proactive Qualification: Before marketing your products internationally, it’s crucial to determine if they qualify under relevant FTAs. This knowledge shapes your marketing strategy and pricing.
• Exporter Responsibilities: While importers receive direct financial benefits, exporters bear significant responsibility for documenting and certifying goods as FTA-eligible.
• Beyond USMCA: While the United States-Mexico-Canada Agreement (USMCA) is well-known, the U.S. has dozens of other FTAs that offer export opportunities and sourcing benefits.
• Compliance is Key: Implementing a robust FTA compliance program is essential to avoid potential penalties and audits from importing countries.

significant updates in areas such as:

• Automotive industry regulations
• Intellectual property protections
• Digital trade provisions
• Environmental standards
• Labor standards
• Agricultural access
• De minimis has increased from 7% under NAFTA to 10% under USMCA

And unlike NAFTA, the USMCA includes a six-year review process to keep the agreement current.

Rules of Origin, Certification and Documentation

Proper documentation and compliance are essential when participating in FTAs. Here are some areas addressed in the full webinar:

• Methods of Qualification: Learn how to read and apply the rules of origin to your product. And remember, the country of origin always takes precedence over the country of export. Learn the difference between “obtained,” “produced” and “substantial transformation” in regards to product qualification.  
• Origin Worksheets: Learn how to use a detailed worksheet to track the origin and value of components in complex products. This is important for determining and documenting if your goods qualify for preferential treatment.
• Certificates of Origin: While formal certificates are not always required, these remain the most structured way to certify eligibility. (Download free templates for all U.S. FTAs here.)
• Recordkeeping: Maintain all relevant documentation for at least 5 years from the date of importation.

This recap is only a quick look at the information shared during the webinar. Learn more about taking advantage of FTAs here: Watch the full recording of The USMCA and Other Free Trade Agreements here.

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