US-Led Trans-Pacific Partnership May Have Chinese Competition

Posted on December 5, 2012 by marketing

The Obama administration is looking to finalize its much-anticipated Trans-Pacific Partnership, an 11-nation regional trade agreement that, if successful, will expand American exports and economic influence in Asia.

As we noted previously, the TPP is still facing many challenges as negotiations draw to a close. The Association of Southeast Asian Nations recently unveiled plans for the Regional Comprehensive Economic Partnership, which would be the world’s largest-ever regional trade agreement.

The partnership includes ASEAN’s 10 member states as well as Australia, China, Japan, India, South Korea and New Zealand. Its creation raises several questions for the future of the TPP – namely, can the US-led agreement thrive alongside Asian-organized, competing trading blocs, especially if those blocs include China and exclude the US?

Some believe that competing pro-China and pro-US treaties may escalate current economic tension in the region, rather than alleviating it. The potential conflict also presents an especially tricky situation for Australia, whom the US sees as playing a key role in nurturing American economic activity in Asia.

US-Panama FTA to Take Effect in Early November

Posted on October 9, 2012 by marketing

The long anticipated US-Panama Free Trade Agreement (FTA) is expected to take effect in early November after years of delay. The agreement will immediately remove duties on 50% of US exports of agriculture and 86% of US exports of automobiles, electrical equipment, and pharmaceutical goods. This FTA will be a huge step for both countries as the US is Panama’s largest trading partner and roughly 10% of US imports and exports pass through the Panama Canal.

Panama’s infrastructure and economy make the country a very attractive trading partner to the US. Panama is a growing ocean shipping and air cargo hub with a railroad and major highway that connects the Atlantic and Pacific Oceans. A $5.25 billion expansion of the Panama Canal is currently underway, which will double the canal in size. Panama also has an extremely strong financial sector, which the US will gain access to as a result of the FTA along with other areas of the service dominated economy including telecommunications, energy, and professional services.

The US-Panama FTA has seen many delays as it was originally negotiated under the administration of George W. Bush but was not approved by Congress before he left office in 2009. The agreement was finally approved in October 2011 after President Obama made several changes to the agreement. Panama’s National Assembly passed the final piece of legislation last week and is now waiting for Panama’s President Ricardo Martinelli to sign the legislation. The US is hoping that both countries will begin taking advantage of the agreement early next month.

For more information on the US-Panama FTA, please read:

Journal of Commerce, “US-Panama FTA Expected to Take Effect in November”

Reuters, “U.S., Panama to implement trade pact by early November”

Trans-Pacific Partnership May Encounter Integration Issues

Posted on September 6, 2012 by marketing

The Trans-Pacific Partnership (TPP) began as a small trade agreement between four Pacific nations, but has evolved into a highly influential FTA that, at this stage of negotiation, involves 11 countries and has invited several others for inclusion. The agreement offers a range of benefits for all nations involved, but integrating the very different economies of East and West may be more difficult than expected.

The agreement, which includes nine Asia-Pacific countries, could yield $295 billion globally, including $78 billion for the United States, and its template should provide free trade gains of nearly $2 billion. The reason for the TPP’s anticipated success is also the reason that drafting the agreement may prove difficult, however. Asian FTA templates benefit emerging-market economies that seek market access for manufactured goods, whereas US trade templates concentrate on advantages for the services, investment and intellectual property sectors.

A report published by the Peterson Institute for International Economics investigated the discrepancies in 21 trade areas in Asian and US agreements, ranked for depth, capacity and enforcement. The report found divergences in policy, of course, but some interesting outliers like labor, cooperation and government procurement emerge as potential issues that could bog down negotiations.

Additionally, issues that concern politicians on both sides of the Pacific – like technology and small enterprise – have yet to earn high scores on either template, as The Economist points out. Look for the negotiations to tackle some tricky issues in the upcoming months.

Presidential Trade Proclamation Signed to Implement the U.S.-Colombia Trade Agreement

Posted on May 18, 2012 by marketing

On May 14, 2012, President Obama signed the presidential proclamation that put the United States-Colombia free trade agreement into force. Designed to promote the flow of certain goods and services between the countries, the free trade agreement was years in the making.

According to the Office of the US Trade Representative (USTR), the tariff reductions in the Agreement will expand exports of US goods alone by more than $1.1 billion, supporting thousands of additional American jobs. The International Trade Commission also projected that the Agreement will increase US GDP by $2.5 billion. The Agreement will remove significant barriers to US goods from entering Colombia’s market, as over 80 percent of US exports of consumer and industrial products to Colombia will become duty free immediately, with remaining tariffs phased out over the next 10 years.

Because the agreement specifies changes in rules of origin and HS codes, Amber Road was anticipating the formalization with the necessary updates to its extensive body of trade content, known as Global Knowledge^®. Amber Road’s trade specialists constantly monitor government information feeds from around the world to ensure that the Global Knowledge^® database is kept current as trade regulations change.

In fact, the US-Colombia FTA is affecting 20,681 HS codes and 858 rules of origin. Amber Road’s customers will see these changes within 24 hours of the effective date of the agreement. No other vendor in the industry provides that level of service when it comes to trade content.

You can read the full press release here. To learn how Amber Road can help your company realize the benefits of an FTA program, check out our Trade Agreement Management brochure.

Last Chance to Register for Today’s FTA Management Webinar!

Posted on April 19, 2011 by marketing

Join our webinar, Best Practices for Managing Free Trade Agreement Management Processes, to learn how your company can successfully implement and optimize NAFTA. Broadcasting live on Tuesday, April 19 at 2pm EDT, presenters will address key findings from this industry benchmark study. Presenters include:

Suzanne Richer, President, Customs & Trade Solutions, Inc.
Scott Byrnes, Vice President of Marketing, Management Dynamics, Inc.
Moderator: Lara Sowinski, Managing Editor of World Trade magazine

Join us TODAY, Tuesday, April 19 at 2pm EDT. Register now!

‘Tis the Summer to Sign Trade Agreements

Posted on July 23, 2009 by marketing

Two reports were released stating new trade agreements were recently signed.

Around June 28th, Jordan and Canada signed a new trade agreement, giving Jordan full custom duty exemption on Jordanian goods. In return, over the next 4 years,Canadian products will receive reduced custom duties.

Forestry, manufacturing, agriculture and agri-food are expected to benefit from immediate duty-free access.

Next, Chile and Turkey signed a trade agreement around July 20th, which will allow 98 percent of its bilateral trade to be duty free. This is the first FTA between a South American country and Turkey.

“This trade agreement signed by Chile can be an entrance to an economic zone of great potential, which is practically unexplored for us,” Chilean President Bachelet said.

Forestry and Agriculture will be most benefited in Chile.

For more information on Global Trade news, subscribe a free weekly Management Dynamics GTM newsletter.

To read the full articles, click Canada/Jordan FTA or Chile/Turkey FTA.

On The Horizon: Chile-Vietmam FTA?

Posted on June 16, 2009 by marketing

Via ThanhnienNews.com – Chile and Vietnam are hoping to sign a free trade agreement soon.

Chilean President Michelle Bachelet said Friday she hoped Vietname and Chile will soon sign a free trade

Flag of Chile

agreement (FTA) as the two countries have come into concurrence on many important issues during FTA negotiations.

Meeting Vietnamese Vice President Nguyen Thi Doan in Santiago, the Chilean president expressed her pleasure at the development of the two countries’ relations in all aspects.

Free Trade Agreements are not just popular among the G8 countries – for smaller players, benefits like new export markets, lower cost of business, and new sourcing options can help develop growing economies. I think this is an especially interesting FTA as Chile and Vietnam are such different countries – I believe they will complement each other well.

South Korea-EU Free Trade Agreement

Posted on June 16, 2009 by marketing

According to the Korea Times, South Korea and the EU are getting closer to finalizing a free trade agreement.

“Korea and the EU share the view that an early conclusion of the FTA and upgrading the Framework Agreement for Trade and Cooperation, signed by the two sides in 1996, are crucial to developing future-oriented partnership,” said a joint statement issued at the end of the summit.

They also agreed to increase cooperation on issues related to North Korea’s nuclear program, the global economic crisis, climate change, the energy crisis and the United Nations’ global peacekeeping programs, the statement said.”

Even in a global recession, there has been a lot of free trade agreement activity. Many countries are looking to new export markets in hopes to jumpstart their industries at home.

Keeping up with all these trade agreements can be hard, but the benefits far outweigh the costs – especially when you have a program to automate your trade agreements. As you add more agreements, your cost savings increase exponentially.

If your company is trying to learn more about free trade agreements, check out the recent webinar from World Trade Magazine: “Moving Beyond Global Sourcing to Trade Agreement Management.”

The presenters address key findings from an industry survey on how companies are using FTAs and deliver best practices for your company to fully take advantage of FTA opportunities. It’s available on-demand (with a short registration page) until June 2010. Learn more at World Trade Magazine’s Webinar page.

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Resources for trade agreement news and analysis, and other GTM musings

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