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How FTAs Lead to Better Export Opportunities in Foreign Markets?

Free trade agreements or FTAs are the mutual agreements between Australia and its trading partners with the common aim of achieving reduced tariffs and import duties. By enclosing the Australian certificate of origin, the exporters from the country can achieve these benefits along with many others. Discussed below are some of the top ways in which obtaining AANZFTA certificate of origin for export to New Zealand and ASEAN countries and TAFTA certificate of origin for export to Thailand and many similar certificates are useful in exploiting the benefits of FTAs.

Expanding the Reach

Without the existence of FTAs between Australia and other countries, you might not be able to export your goods to a number of foreign markets due to high import tariffs. Obviously, it would limit the reach of your business products and deprive you from the profits that you desire. In other words, these agreements allow the creation of new and exciting trade opportunities.

Increasing the Demand

The reduced tariffs further reduce the cost price of the imported goods. It means that your product would be sold at prices that would definitely attract more number of buyers in the foreign markets. For example, consider that you export a product to Korea under KAFTA (for which you must enclose the KAFTA Certificate of origin). On the other hand, an exporter from some other country, not under any FTA with Korea, exports the same product to the country. In this case, your product would cost less to the buyers, thereby adding to its demand.

Encouraging the Competitiveness

The FTAs encourage competition among the goods imported from different manufacturers, exporters and countries. If you are confident about the quality of your product, you can expect it to stay ahead in the competition. With this, you would be motivated to come up with even more competitive products which further lead to increase in innovation and production as well. In other words, your products are bound to flaunt increased global appeal in this scenario.

An important requirement of exporting under FTAs is the certificate of origin, like the JAEPA certificate of origin for export to Japan from Australia and so on. Make sure that you obtain it from the right chamber of commerce.

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