Free Trade Agreements 2026 — How FTAs Work & How to Claim 0% Duty Rates
The US has 14 active FTAs covering 20 countries. The EU has agreements with 40+ countries. Qualifying goods can enter at 0% — but only if you meet the rules of origin and have the right documentation.
Key insight: Many importers miss FTA savings because they don't check qualification. A company importing from South Korea at the standard 3% MFN rate on electronics may qualify for 0% under KORUS — saving thousands per year. The barrier is documentation, not the agreement itself.
US Free Trade Agreements — Active in 2026
Replaces NAFTA. Rules of origin: 75% regional value content for auto parts.
Strong for electronics, auto parts, chemicals. Phase-out periods ended 2022.
First US FTA. Covers industrial goods, agricultural products with some exceptions.
Services and IP-focused. Strong for tech and financial services.
Bilateral tariff elimination fully phased in. Good for agriculture.
Covers goods, services, investment, and IP.
Phase-in schedules for agricultural goods ongoing.
Only US FTA with a Middle Eastern country (besides Israel).
Key EU Free Trade Agreements
EU-Japan EPA
Eliminates 99% of tariffs. Agri + industrial goods.
CETA (EU-Canada)
Eliminates 98% of tariff lines. Provisional application since 2017.
EU-South Korea FTA
First EU FTA with Asia. Full implementation since 2015.
EU-Singapore FTA
In force 2019. Covers goods, services, and investment.
EU-Vietnam FTA (EVFTA)
In force 2020. Covers 99% of goods over 7-10 years.
EU-UK TCA
Post-Brexit deal. 0% tariffs on rules-of-origin qualifying goods.
EU-Mercosur
Agreement reached 2024; ratification ongoing in 2026.
EU GSP (Standard/GSP+/EBA)
Unilateral preferences for 90+ developing countries.
How to Claim FTA Preferential Rates — Step by Step
Classify your product (HTS code)
FTA rates are HTS code-specific. Get the 10-digit HTS code for your product first — the general description is not sufficient for FTA determination.
Check the FTA schedule
Each FTA has a tariff schedule listing the preferential rate per HTS code. Many products phase down to 0% over multiple years. Check the current staging rate for your HTS code.
Verify rules of origin
Determine which ROO applies to your HTS code: tariff shift, regional value content, or specific process requirement. Collect or verify documentation from your supplier to confirm the goods meet the requirement.
Obtain the origin certification
For USMCA: the importer can self-certify or obtain certification from the exporter/producer. For EU agreements: EUR.1 movement certificate, REX (registered exporter) statement, or approved exporter statement. For GSP: Form A or REX statement.
Claim at entry
Indicate the FTA claim on your import entry (CBP Form 7501 in the US, or the EU import declaration). Retain supporting documentation for at least 5 years — CBP and EU customs conduct post-entry audits.
Frequently Asked Questions
What is a free trade agreement (FTA)?
A free trade agreement is a treaty between two or more countries that reduces or eliminates tariffs, import quotas, and other barriers to trade between them. FTAs typically cover goods and often include services, investment, and intellectual property. To benefit from FTA preferential rates (usually 0%), goods must meet 'rules of origin' requirements proving they were genuinely produced in the FTA partner country.
How do I claim FTA preferential duty rates?
To claim an FTA rate, you must: (1) determine your product qualifies under the FTA's rules of origin, (2) obtain or prepare the required origin certification (e.g., USMCA Certificate of Origin, EUR.1 movement certificate for EU agreements, Form A for GSP), and (3) present the certificate to customs at the time of import or within the post-import claim period (typically 1–4 years in the US). Incorrectly claiming FTA rates can result in unpaid duties, penalties, and interest.
What are rules of origin?
Rules of origin (ROO) are the criteria that determine a product's country of origin for trade preference purposes. Common tests include: Wholly Obtained (100% produced in the FTA country), Tariff Shift (product changes HTS heading after processing), Regional Value Content (percentage of value added in the FTA region), and Technical Requirements (specific processes required). For USMCA, automotive goods require 75% regional value content and 70% North American steel/aluminum content.
What is the difference between an FTA and GSP?
A Free Trade Agreement (FTA) is a bilateral or multilateral reciprocal treaty where both sides offer tariff concessions to each other. The Generalized System of Preferences (GSP) is a unilateral non-reciprocal preference program where developed countries give developing countries reduced tariffs without requiring anything in return. The US GSP (expired 2020, reinstated 2022–2025 but lapsed again) covered products from eligible developing countries. EU GSP (EBA, Standard, GSP+) remains active.
Can I use FTA rates for goods assembled in an FTA country from Chinese parts?
It depends on whether the goods meet the FTA's rules of origin. Simply assembling Chinese components in Mexico does not automatically qualify goods for USMCA 0% rates — you need to meet the applicable tariff shift or regional value content requirement. For most manufactured goods, the tariff shift rule requires that the final HTS chapter/heading differs from the chapter/heading of the imported inputs. This is why supply chain design matters for FTA qualification.
Does the US have a free trade agreement with China?
No. The US has no FTA with China. Chinese goods face the standard MFN rate plus any applicable Section 301 tariffs (7.5–25%), Section 232 tariffs (steel/aluminum), and anti-dumping/countervailing duties. The US-China Phase One Trade Agreement (2020) was a bilateral deal on purchasing commitments and market access, not a tariff-elimination FTA.
How do I find out if my product qualifies for FTA rates?
Start by identifying your product's HTS code. Then check the FTA's schedule of tariff concessions for your target country — these are published by the US CBP, EU Taxation and Customs Union, or the relevant government authority. You can also use free trade agreement tariff tools like CBP's online FTA tariff tool or the EU's Access2Markets portal. Zentria Flow's tariff calculator incorporates FTA rates for major trade corridors.
Related Guides
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