With the May 14th presidential proclamation putting the US-Colombia free trade agreement into force, it has never been more critical for GTM software users to understand the importance of the trade content that powers their solutions. Because FTAs specify changes in rules of origin and HS codes, it is important that organizations using global trade management software ensure that their vendor made the appropriate updates to the underlying trade content and put them in place immediately.
By having access to these trade content updates, organizations are able to find potential reductions in landed costs due to preferential treatment as of the effective date. Supply chain managers should be able to run scenarios that reflect preferential rates as they make sourcing decisions.
To learn more, click here to read the Supply Chain Digest article written by Anthony Hardenburgh, Vice President of Global Trade Content at Amber Road.
On May 14, 2012, President Obama signed the presidential proclamation that put the United States-Colombia free trade agreement into force. Designed to promote the flow of certain goods and services between the countries, the free trade agreement was years in the making.
According to the Office of the US Trade Representative (USTR), the tariff reductions in the Agreement will expand exports of US goods alone by more than $1.1 billion, supporting thousands of additional American jobs. The International Trade Commission also projected that the Agreement will increase US GDP by $2.5 billion. The Agreement will remove significant barriers to US goods from entering Colombia’s market, as over 80 percent of US exports of consumer and industrial products to Colombia will become duty free immediately, with remaining tariffs phased out over the next 10 years.
Because the agreement specifies changes in rules of origin and HS codes, Amber Road was anticipating the formalization with the necessary updates to its extensive body of trade content, known as Global Knowledge®. Amber Road’s trade specialists constantly monitor government information feeds from around the world to ensure that the Global Knowledge® database is kept current as trade regulations change.
In fact, the US-Colombia FTA is affecting 20,681 HS codes and 858 rules of origin. Amber Road’s customers will see these changes within 24 hours of the effective date of the agreement. No other vendor in the industry provides that level of service when it comes to trade content.
You can read the full press release here. To learn how Amber Road can help your company realize the benefits of an FTA program, check out our Trade Agreement Management brochure.
The US-South Korea Free Trade Agreement will go into full effect tomorrow, March 15, 2012. With this FTA, roughly 80% of US exports of industrial products to South Korea will be duty free, while two-thirds of US exports of agricultural products will also become duty-free.
The International Trade Commission estimates that the reduction of South Korean tariff and non-tariff quotas on goods alone will add between $10 and $12 billion to the annual US GDP, and around $10 billion to annual merchandise exports to South Korea. According to Ron Kirk, Ambassador of the U.S. Trade Representative, once the agreement goes into effect, it will open up South Korea’s $1 trillion economy and strengthen our economy’s partnership with a key Asia Pacific Ally. To read more about the new free trade agreement, click here.
Is your company prepared to take advantage of this duty-saving opportunity?
The most common reason companies do not take advantage of FTAs is the administrative burden of identifying applicable FTAs and qualifying products. With over 100 FTAs in place around the world, manually administering trade agreements is understandably difficult. Global Trade Management solutions, however, can help you manage the solicitation and qualification process with your suppliers.
To find out how your company can automate this complex process and take advantage of the US-South Korea Free Trade Agreement, check out Amber Road’s Trade Agreement Management solution.