The US has 20 FTAs in force at this point. They include treaties with the following countries according to the US Trade Representative (USTR) office.
Australia
Bahrain
Canada
Chile
Colombia
Costa Rica
Dominican Republic
El Salvador
Guatemala
Honduras
Israel
Jordan
Korea
Mexico
Morocco
Nicaragua
Oman
Panama
Peru
Singapore
US-Mexico-Canada (USMCA)
Other Agreements
In addition, the US has an agreement with Japan for critical minerals.
The US also formed a 2022 US-Taiwan Initiative on 21st Century Trade for enhanced economic ties and trade.
In June 2023, US President Biden and UK Prime Minster Rishi Sunak announced the 'Atlantic Declaration' to strengthen economic ties between the UK and the US. The agreement included a limited trade pact covering critical minerals needed for EV batteries, a new data protection deal, and easing other trade barriers.
With USTR Katherin Tai visiting Uzbekistan and Kazakhstan this month, could future trade agreements be negotiated with these emerging economies?
Friendshoring
We have reported on “Onshoring, Nearshoring” and “Reshoring” extensively in past issues of IBNewsmag.com. Perhaps a newer term is that of “Friendshoring” - a growing trade practice that helps SMEs reduce vulnerabilities tied to geopolitical and supply chain disruptions where these supply chain networks are focused on countries regarded as political and economic allies, according to a 2023 report from the World Economic Forum.
According to the report, companies mitigate risks of sudden disruptions by aligning production, their trade policy, and supply activities with countries sharing mutual geopolitical interests and stable political climates.
The United States-Mexico-Canada Agreement (USMCA, listed above), which replaced the North American Free Trade Agreement (NAFTA), serves as one prominent example of friendshoring, strengthening trade relationships among these North American allies.
Despite the US being the EU’s largest trade and investment partner, there is no dedicated free trade agreement between the EU and the US.
The Transatlantic Trade and Investment Partnership (TTIP) negotiations were launched in 2013 but ended without conclusion at the end of 2016. They were formerly closed in 2019. Nevertheless, transatlantic trade continues to enjoy one of the lowest average tariffs (under 3%) in the world, governed by the World Trade Organization (WTO) rules.
FTA Comments
For the most part, NAFTA (Now the USMCA) has been greatly beneficial for our wastewater treatment systems in Mexico and Canada.
It would be great to have an FTA with Brazil because of their restrictive protection trade taxes.
India would be another beneficial FTA .
Robert Rebori, CEO, BioMicrobics
You mentioned China’s restrictions on certain raw materials. How is this impacting your overall business?
Our concern is that as the US imposes more and higher tariffs on products coming from China, China will retaliate by imposing licensing requirements to effectively cut off the supply of critical materials that China controls.
Ken Werner, General Manager, Engis Corporation
תגובות