The United States of America has Free Trade Agreements (FTAs) with 20 countries. These treaties have been signed to facilitate trade and strengthen commercial ties between the US and the other participating countries. The benefits of an FTA include:

  • Promoting trade
  • Creating a dynamic business climate
  • Encouraging foreign investments
  • Fostering technology transfer opportunities

Businesses that import and export with the member countries can take advantage of the FTAs to reduce or eliminate tariffs, access a more extensive range of competitively priced goods and services, address behind-the-border barriers, and receive many more benefits. The specific advantages, opportunities and impacts differ for every free trade agreement.

US-Australia Free Trade Agreement

Under the US-Australia Free Trade Agreement, more than 97 percent of Australia's non-agricultural exports to the United States became duty-free. The trade between the US and Australia has doubled since the FTA has been in effect for the past 17 years. The United States has maintained a trade surplus with Australia totaling $9.3 billion in 2016. The US-Australia FTA has a Joint Committee that meets annually to supervise the implementation of the FTA and review the trade relationship between the countries.

US-Bahrain Free Trade Agreement

Since 2006, the US-Bahrain Free Trade Agreement allows 100 percent of the two-way trade in industrial and consumer products to flow without tariffs. The FTA increased US agricultural exports to Bahrain, boosting jobs for US farmers and workers. In addition, Bahrain has forged new opportunities with US finance, healthcare, telecommunications, architecture, engineering, and many other service providers. Bahrain was the 7th largest goods trading partner of the US in 2019. The same year, the United States goods and services trade surplus with Bahrain was $297 million. The top export categories were: aircraft, machinery, vehicles, and electrical equipment. US agricultural exports totaled $69 million and included tree nuts, dairy products, beef, cotton, and packaged foods.

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US-Canada-Mexico Free Trade Agreement

The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. This Agreement supersedes the earlier North American Free Trade Agreement (NAFTA). The USMCA creates a more balanced, reciprocal trade supporting high-paying jobs for Americans and the North American economy. The revised FTA aims to create a more level playing field for American workers, farmers, ranchers, and agribusinesses. It has also added chapters for digital trade, anti-corruption, good regulatory practices, and dedicated chapters to ensure small and medium-sized enterprises benefit from the FTA. This trade agreement has supported more than 3 million American jobs since its initial version, effective from 1994. In 2016, the goods trade between the US and the two trading partners totaled nearly $800 billion.

Central America Free Trade Agreement–Dominican Republic

The Central America Free Trade Agreement–Dominican Republic (CAFTA-DR) is the first free trade agreement between the United States and its Central American neighbors: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic. The Agreement promotes vital trade and investment ties, growth, and stability throughout the region. The countries in CAFTA-DR represent the United States' 18th largest trading partner, with $57.4 billion in goods trade in 2018. The US trade surplus with CAFTA-DR economies for the same year was $7 billion. According to the US Department of Commerce, exports to CAFTA-DR supported around 134 thousand jobs in 2014.

United States-Chile Free Trade Agreement

The US-Chile Free Trade Agreement, in effect from 2004, eliminates tariffs, reduces barriers to trade in services, provides intellectual property protection, and ensures regulatory transparency. Since the Agreement, US exports to Chile have increased to more than $10 billion in 2016. Key US exports include agricultural and construction equipment, automobile parts, computer products, medical equipment, and paper products. All tariffs for products entering from the US into Chile were phased out, benefitting US farm products like soybeans, pork, beef, durum, wheat, potatoes, and processed foods.

United States-Colombia Trade Promotion Agreement

The United States-Colombia Trade Promotion Agreement (TPA) is a comprehensive free trade agreement that eliminates tariffs and removes barriers to US services, including financial services. The TPA came into effect in 2012, and in 2016, the United States imported $10.4 billion in goods from Colombia and exported goods valued at $9.7 billion to Colombia. According to the International Trade Commission (ITC), once the TPA is fully implemented, it will expand the US goods exports by more than $1.1 billion and boost US GDP by $2.5 billion.

United States-Israel Free Trade Agreement

The United States-Israel Free Trade Agreement serves as the foundation for expanding trade and investment, reducing trading barriers, and promoting regulatory transparency. This Agreement was the United States' first free trade agreement, coming into effect in the year 1985. Since then, the total value of US goods traded with Israel has quintupled from $4.7 billion in 1985 to over $27 billion in 2016.

United States-Jordan Free Trade Agreement

The United States-Jordan Free Trade Agreement is an extensive economic partnership that was fully enforced in 2010. After the FTA, products manufactured in Jordan, Egypt, or the West Bank and Gaza can enter the US duty-free. The two-way goods trade between the US and Jordan has grown by over 350%, clocking in at more than $2 billion in 2016.

United States-Morocco Free Trade Agreement

The United States-Morocco Free Trade Agreement enables improved commercial opportunities for US exports to Morocco and supports economic and political reforms in Morocco. In 2016, US exports to Morocco were up 269% at 1.2 billion, while US imports from Morocco totaled $788 million.

United States-Oman Free Trade Agreement

The United States-Oman Free Trade Agreement builds on existing agreements to promote economic reform and openness. The FTA highlights export opportunities for US goods and service providers and trade & investment liberalization in Oman. Oman is the 5th Middle Eastern country to sign an FTA with the United States. The US goods exported to Oman in 2016 totaled $1.2 billion.

United States-Panama Trade Promotion Agreement

The US-Panama Trade Promotion Agreement implemented in 2012 includes provisions to reduce trade barriers and also accounts for other disciplines like customs administration, intellectual property rights, electronic commerce, environmental protection, and many other areas. The US has maintained a consistent trade surplus with Panama, with US total goods export value being $4.6 billion in 2016.

United States-Peru Free Trade Agreement

The US-Peru Free Trade Agreement eliminates tariffs, removes barriers to US services, and strengthens protections for workers. After the Agreement was enforced, more than two-thirds of the US farm exports to Peru became duty-free. The US has maintained a substantial trade surplus with Peru. US exports to Peru in 2016 were %5.9 billion, while imports totaled $4.3 billion.

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United States-Singapore Free Trade Agreement

The US-Singapore Free Trade Agreement came into effect in 2004. Along with lowering the tariff, the US-Singapore Free Trade Agreement helps in boosting US exports, increasing US presence in Southeast Asia and improving US competitiveness around the globe. The US trade surplus with Singapore amounted to $5.6 billion in 2016.

United States- Korea Free Trade Agreement

The United States- Korea Free Trade Agreement has benefitted both countries immensely. South Korea is the United States’ sixth-largest trading partner. The US trade surplus with South Korea was $13.4 billion in 2019. The key export categories are mineral fuels, electrical machinery, optical and medical instruments, and aircraft. US agricultural exports to South Korea totaled $7.6 billion in 2019, making South Korea the United States' 5th largest agricultural export market. Leading products in this category are beef and beef products, pork, processed foods, fresh fruit, and soybeans.

These US trade agreements are dynamic in nature and undergo replacement or improvements every few years depending on the international and domestic trade situation and other factors. These agreements and the policies contained within them are useful to regulate US trade and commerce with its several international partners. Having knowledge of the terms and nuances of each agreement is beneficial for businesses involved in trade.