Q: Why should companies consider trade agreements when looking to find the best sourcing option?

A:Companies need to factor into their sourcing decisions the opportunities provided by free trade agreements if they are to truly reduce lead times and take advantage of cost savings available throughout their supply chain. By incorporating trade agreements into their sourcing strategy, companies are able to analyze the savings opportunities that exist when sourcing from countries both local and afar, and determine where preferential duty rates may impact the traditional landed cost of their purchased goods by delivering better tariff outcomes.

Companies that can effectively integrate trade agreements in this way will gain a competitive edge in the marketplace; however, given the dynamic nature of trade and with new agreements signed every other day, for most this is easier said than done.

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