Understanding free trade agreements: How exporters can leverage FTAs for business growth 

Free Trade Agreements (FTAs) are more than just political instruments—they’re practical tools that reduce costs, open new markets, and help businesses expand internationally with fewer barriers.  

By eliminating or lowering tariffs, streamlining customs processes, and simplifying regulations, FTAs can significantly improve the competitiveness of exporters. 

In Part 1, we explored what FTAs are and how they work. In this follow-up, we’ll focus on helping you leverage these agreements to grow your business. Whether you’re based in Georgia, Kazakhstan, or Moldova, the steps below can help you access new customers abroad—more efficiently and cost-effectively. 

Identifying FTAs that apply to your business 

Before you can benefit from an FTA, you need to know which ones are relevant to your export plans. 

Start by checking whether your country has an existing trade agreement with your target market. For instance, Armenia, Ukraine, and Georgia have trade agreements with the EU, allowing simplified access to European customers. 

Where to check: 

These resources can help you determine if your goods qualify for preferential treatment under a specific agreement—and what documentation is needed. 

Ensuring compliance with FTA requirements 

To benefit from lower tariffs or streamlined customs under an FTA, you must meet specific conditions—chiefly, the Rules of Origin (ROO). These rules determine whether your product ‘originates’ from a participating country. 

Key documents to prepare: 

Common compliance mistakes to avoid: 

Even small errors can lead to penalties, delayed shipments, or disqualification from FTA benefits. It’s wise to consult a customs broker or trade advisor familiar with your destination market. 

Maximising FTA benefits for business growth 

Reduce costs and improve pricing 

With lower or zero tariffs, your product becomes more competitively priced in target markets—without cutting into your profit margins. This can make a real difference when selling into price-sensitive regions like Southeast Asia or Southern Europe. 

Streamline customs clearance 

FTAs often come with simplified customs procedures and faster border checks. This means shorter delivery times and happier customers—especially crucial for perishable goods or just-in-time supply chains. 

Expand market reach 

FTAs help you overcome regulatory hurdles and gain smoother access to large markets. For example, Moldova’s trade agreement with the EU allows easier entry into 27 member countries through one harmonised framework. 

Leverage duty drawbacks 

In some agreements, you may be able to reclaim duties paid on goods that are later exported—a bonus for manufacturers sourcing materials globally and selling finished products abroad. 

Free Trade Agreements aren’t reserved for multinational corporations. For small and medium-sized exporters across Eastern Europe and Central Asia, they provide a practical and powerful route to global markets. 

Start by identifying FTAs relevant to your industry. Work with customs brokers, trade experts, and government export bodies to ensure compliance and unlock the full benefits. 

When used strategically, FTAs can turn international trade from a risky leap into a well-calculated growth move—one that’s faster, cheaper, and more competitive.