A Step-by-Step Guide To FTA Optimization
The COVID-19 pandemic has highlighted the need for Asia-based organizations to respond to a changing global trade landscape with agility.
According to Thomson Reuters’ Global Trade Report, 54% of business leaders are experiencing supply chain disruption as their organization’s biggest barrier to global trade. A further 48% have identified lack of transparency across the supply chain, and complicated and changing regulations as significant hurdles to global trade in Asia.
Within an increasingly complex economic and regulatory environment, many multinational organizations are adopting strategies to support supply chain resiliency.
Asia is home to over half of the world’s Free Trade Agreements (FTAs), with the region seeing a five-fold increase in agreements over the past two decades. It includes comprehensive regional trade deals that link regional markets with key trading partners in Europe, North America, and Oceania. In particular, the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), two of the region’s premier and comprehensive trade agreements, are set to deepen economic interlinkages and change trade landscapes.
The sheer number of agreements available to organizations means that they have multiple opportunities to rejig their supply chain strategies. However, according to a KPMG International & Thomson Reuters report, only 23% of the companies utilize the FTAs available to them.
A lack of awareness of potential benefits, perceived complexity, fear of non-compliance and cost are primary reasons companies are not full taking advantage of FTAs.
How do Global Trade and Supply Chain Executives leverage FTAs as a strategic tool? What are the 5-step process to optimizing FTAs? Download the guide to find out more.
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