The commercial treaties are agreements between two or more countries to define the conditions under which it will develop the exchange of goods and services among its markets.
These agreements may include reduction or elimination of tariffs, rules of origin, customs procedures, mechanisms of trade facilitation and other measures to establish conditions for trade between the participating countries.
For enterprises engaged in import and export operations, knowing the commercial treaties applicable can help identify opportunities, requirements, and possible benefits in its strategy of foreign trade.
What is the purpose of the commercial treaties?
Trade agreements seek to establish rules to facilitate and give greater certainty to the commercial trade between the participating countries.
Depending on the agreement, may establish conditions related to:
- Reduction or elimination of tariffs.
- Rules of origin.
- Customs procedures.
- Access to markets.
- Trade facilitation.
- Investment.
- Trade in goods and services.
- Mechanisms for resolving commercial disputes.
The scope and the conditions depend on each treaty.
How do the commercial treaties?
When two or more countries held a commercial treaty, laying down the conditions under which certain products can receive a specific treatment to be marketed between their territories.
One of the most important elements for companies are the tariff preferences, by which certain goods can access tariffs or reduced, according to the agreement and corresponding product, to its elimination.
However, the existence of a treaty does not mean that any goods sent from one of the participating countries to automatically obtain these benefits.
It is necessary to verify the applicable terms and conditions, including the tariff classification and rules of origin concerned.
What is the relationship between trade agreements and rules of origin?
The rules of origin to determine when a product may be considered to be originating from any of the participating countries of a trade agreement.
For example, a product may be shipped from a country that participates in a treaty, but have been primarily manufactured with materials and processes performed in another territory.
For this reason, must be analysed on the rule of origin applicable to determine if you can receive preferential treatment appropriate.
What benefits can represent for companies?
Trade agreements can create opportunities related to market access, tariff conditions and diversification of suppliers and international customers.
To use them correctly, it is important to analyse them from the planning of the operation and not only when the goods is next to enter or exit the country.
Know what agreements exist and what can be applied which allows to evaluate alternatives of supply, costs, and markets with more information.
Commercial treaties and logistics planning
A strategy of foreign trade must consider not only how to transport a commodity, but also the conditions under which you will be able to be traded internationally.
In Core Global Logistics , we develop solutions international logistics considering the specific needs of each operation, coordinating transportation alternatives and the different elements involved in the movement of goods.
An international operation efficient, begins with information, planning and the right strategy for each market.