5 FTA Savings Most Importers Are Missing

The US FTA Network

Agreement	Countries	Typical Savings
USMCA	Canada, Mexico	0% on most goods
KORUS	South Korea	0% on 95%+ of tariff lines
CAFTA-DR	Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Dominican Republic	0% on most manufactured goods
Australia FTA	Australia	0% on 99% of tariff lines
Others	Israel, Jordan, Chile, Singapore, Morocco, Bahrain, Oman, Peru, Colombia, Panama	Varies by product

Saving #1: USMCA on Products You Think Are "Chinese"

Many products assembled in Mexico using Chinese components qualify for USMCA preferential rates if they meet the rules of origin (typically 60–75% regional value content). If your supplier has a Mexico facility, check whether the finished product qualifies.

This is the single biggest savings opportunity for importers currently sourcing from China. A product that faces 25% Section 301 + base duty from China could enter at 0% from Mexico.

Saving #2: KORUS for Electronics and Auto Parts

South Korea is a major exporter of electronics, auto parts, and chemicals to the US. Under KORUS, most of these enter duty-free. Yet many importers still pay MFN rates because they never filed a certificate of origin.

The fix is simple: request a KORUS certificate from your Korean supplier and present it at entry. Savings: typically 2.5–8% of product value.

Saving #3: CAFTA-DR for Textiles and Apparel

Central American countries under CAFTA-DR have preferential access for textiles and apparel — one of the highest-duty categories in the US tariff schedule (base rates of 12–32%). If you're importing garments from Guatemala, Honduras, or El Salvador, FTA rates can drop duties to 0%.

Saving #4: Chile FTA for Agricultural Products

Chile exports significant volumes of wine, fruit, seafood, and copper to the US. The Chile FTA eliminates duties on most of these. If you're importing Chilean wine at 6.3¢/liter or fruit at 2–5%, you might qualify for 0%.

Saving #5: Israel FTA — The Forgotten Agreement

The US-Israel FTA (1985) is one of the oldest and most overlooked. It covers a wide range of products duty-free, including cut diamonds, pharmaceuticals, chemicals, and tech equipment. Israel is also a growing source for cybersecurity hardware and medical devices.

How to Check Eligibility

FTA eligibility depends on three things: (1) the product's HTS code, (2) the origin country, and (3) whether the product meets the agreement's rules of origin. Our FTA checker handles the first two instantly — enter your HTS code and origin country to see which agreements apply and what the preferential rate is.