Regional Trade Agreements (RTA)
Regional Trade Agreements (RTAs) are official treaties between more than one country in a given region that aim to facilitate and improve trade. These agreements decrease or remove trade barriers, such as tariffs, import quotas, and customs delays, allowing commodities and services to cross borders more smoothly. RTAs shape international logistics strategy by influencing shipping routes, regulatory requirements, and pricing structures.
Understanding the extent of RTAs is essential for logistics and freight forwarding businesses contemplating cross-border activities. CargoWise, a widely used logistics software, includes regulatory compliance tools that take into account regional trade frameworks. It helps to automate documentation and customs processes under certain trade agreements. RTAs, such as the ASEAN Free Trade Area (AFTA), the European Union (EU), and the USA-Mexico-Canada Agreement (USMCA), make freight transportation easier and less expensive for shippers and logistics providers operating among member nations.
