Trade Agreements

Association of Caribbean States (ACS)

The Convention Establishing the ACS was signed on 24 July 1994 in Cartagena de Indias, Colombia, with the aim of promoting consultation, cooperation and concerted action among all the countries of the Caribbean, comprising 25 Member States and three Associate Members. Eight other non-independent Caribbean countries are eligible for associate membership.

Asia-Pacific Economic Cooperation (APEC)

(APEC) was formed in 1989 in response to the growing interdependence among Asia-Pacific economies. Begun as an informal dialogue group with limited participation, APEC has since become the primary regional vehicle for promoting open trade and practical economic cooperation.

Association of Southeast Asian Nations (ASEAN)

The ASEAN nations came together with three main objectives in mind: to promote the economic, social and cultural development of the region through cooperative programmes; to safeguard the political and economic stability of the region against big power rivalry; and to serve as a forum for the resolution of intra-regional differences.

European Union

The European Union is an economic and political agreement between fifteen European nations. It purpose is to bring peace, stability and prosperity to Europe through high levels of economic and political cooperation on an international scale

FTA (Free Trade Agreement )

An FTA is an arrangement intended for more liberal exchange and flow of goods and services between trading partners. An FTA does not involve labor mobility across borders, common currencies or uniform standards or other common policies such as taxes. Member countries of a free trade area apply their individual tariff rates to countries outside the free trade area.

Free Trade Zones

Free Trade Zones are special zones for free trade. Free zones under legislation of the sovereign nation where they are located, are considered outside the customs territory of that country. While goods are in these free zones, they can be altered, assembled, manufactured, and manipulated. In the U.S. free trade zones are called foreign trade zones (FTZ). These zones are restricted areas considered outside the territory under the supervision of the U.S. Customs Service.

Typically an FTZ is a large warehouse-fenced and secure that tenants lease in order to bring in merchandise, foreign or domestic to be stored, exhibited, assembled, manufactured, or processed in some way. Foreign trade zones (FTZs) help generate local employment and business revenue stemming from international trade and can boost international cargo volumes at a Port.
Click here for information on the Port of Tacoma’s FTZ zone #86

FTAA/ ALCA/ ZLEA

The Free Trade Area of the Americas (FTAA) is a proposed expansion trade agreement of the North American Free Trade Agreement (NAFTA.) Negotiations began right after the completion of NAFTA in 1994 and are to be completed by 2005. It includes every country in Central America, South America and the Caribbean, except Cuba., a total of 34 countries. Although it is based on NAFTA, FTAA goes far beyond NAFTA in its scope and power. The FTAA would introduce all trade agreements and policies of the WTO into the Western Hemisphere. The U.S. is pushing for an earlier completion deadline of 2003.
The proposed FTAA would give transnational corporations rights to challenge and compete for publicly funded services now provided by the national governments. The FTAA is committed to liberalize trade in services such as education, health care, environmental services, water, energy, and postal services. The FTAA is a very controversial issue at the moment.

November 1, 2002, Hemispheric Trade Ministers Set a Schedule for Advancing FTAA

Trade ministers from the first Summit of the Americas, composed of the presidents of the Western Hemisphere’s 34 democratic nations –who in 1994 agreed to pursue the establishment of Free Trade Area of the Americas (FTAA)– convened in Quito, Ecuador, to continue their efforts to create a hemispheric free trade zone by 2005 that will comprise more than 800 million consumers. At the conclusion of the Quito ministerial, the trade ministers released a 40-point declaration that outlines the objectives and importance of the FTAA. “We consider that the establishment of the FTAA, through increased trade flows, trade liberalization and investment in the hemisphere, shall contribute to growth, job creation, higher standards of living, greater opportunities and poverty reduction in the hemisphere.”

Source: US Dept. of Commerce

North American Free Trade Agreement (NAFTA)

NAFTA, established January 1994, is a free trade agreement comprising Canada, the United States and Mexico. It progressively eliminates almost all U.S.-Mexico tariffs over a 10-year period, with a small number of tariffs for trade-sensitive industries phased out over a 15-year period. Mexico-Canada tariffs are also phased out over a 10-year period.
Five basic principles are covered in order to protect foreign investors and their investment in the free trade area:
1. Nondiscriminatory treatment,
2. Freedom from performance requirements
3. Free transference of funds related to an investment
4. Expropriation only in conformity with international law, and
5. The right to seek international arbitration f or a violation of the agreement’s protections.

Southern Cone Common Market (MERCOSUR)

A South American regional trade agreement between Argentina, Brazil, Uruguay, Paraguay, Bolivia and Chile. Creates a common market with no tariffs between member countries.

World Trade Organization (WTO)

The World Trade Organization (WTO) formed on January 1, 1995, is the successor to the GATT (General Agreement on Tariffs and Trade.) Created by the Uruguay Round it is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.