What contents does an FTA usually contain?
02/10/2023 82Question: What contents does an FTA usually contain?
Answer:
The scope and problems involved in each FTA are different, depending on the agreement between FTA members. However, due to its overall nature to eliminate most trade barriers between member economies, FTA usually includes the following main contents:
Commitments related to freedom of goods (trade in goods):
- Tariff preference
- Rules of origin
- Eliminate or reduce non-tariff barriers
- Customs and trade facilitation
- Principles of treating imported goods when circulating in the domestic market
Commitments related to freedom of service (trade in services):
- Open the service market
- Principles on the treatment of foreign service providers when providing services to Vietnam or Vietnamese organizations or individuals
Commitment group related to other issues:
- Investment
- Intellectual property
- Competition
- Transparency and anti-corruption
- Environment
- Labour
The number and detail of commitments in each field are different in their respective free trade agreements, which depend on the interests of members and the background of negotiations.
Center for WTO and International Trade