CE Free Trade Agreements & Preferential Programs Flashcards

Under the U.S.-Colombia Trade Promotion Agreement, which U.S. export sector saw the most significant tariff reductions?

Answer: Agriculture, with tariff elimination on corn, wheat, soybeans, and other key U.S. farm products

The U.S.-Colombia TPA (effective 2012) immediately eliminated most tariffs on U.S. agricultural exports, opening a major market for American farm products.

What is 'self-certification of origin' under modern U.S. FTAs like USMCA, and who can issue it?

Answer: An importer or exporter can certify on the commercial invoice or a separate document that goods qualify for FTA treatment, without needing a formal government-issued certificate

Modern FTAs like USMCA allow exporters, producers, or importers to self-certify origin using a declaration on the invoice or a separate document, streamlining the claim process.

What is 'drawback' in the context of U.S. export trade and what does it allow?

Answer: A refund of up to 99% of duties paid on imported materials when those materials are exported as part of a manufactured product

Manufacturing drawback allows U.S. exporters to recover up to 99% of duties, taxes, and fees paid on imported components when those components are incorporated into exported finished goods.

What is the Caribbean Basin Initiative (CBI) and which countries benefit from it?

Answer: A U.S. trade preference program granting duty-free access to the U.S. market for eligible Caribbean and Central American nations not covered by CAFTA-DR

The CBI provides unilateral duty-free access to the U.S. market for eligible Caribbean and Central American countries as part of U.S. efforts to support regional development.

How does the U.S.-Australia FTA benefit American exporters in the services sector?

Answer: It provides one of the most comprehensive services liberalization chapters in any U.S. FTA, ensuring market access and national treatment for U.S. service providers

The U.S.-Australia FTA includes a high-standard services chapter that secures market access and non-discriminatory treatment for a broad range of U.S. service industries including finance, telecom, and professional services.

What is the Trade Facilitation and Trade Enforcement Act (TFTEA) and what major enforcement tool did it create for CBP?

Answer: A 2015 law that strengthened CBP's authority to enforce trade laws, including a presumption of forced labor for goods from certain regions and enhanced antidumping enforcement

TFTEA modernized CBP's trade enforcement tools, significantly strengthening the prohibition on importing goods made with forced labor and expanding antidumping/CVD enforcement authority.