The overall concept is simple enough: Fair Trade Agreements (FTAs) open up market access between signatory countries by reducing barriers to trade. The reduction of trade barriers—such as custom duties—effectively makes it easier and more cost effective for U.S. companies to export their products and services to trading partner markets.

Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...