What Are Preferential Trade Agreements?
Preferential trade agreements are treaty-based arrangements between countries that lower or eliminate import duties on specific goods. These agreements are designed to promote trade and economic benefits between member nations.
Markets Pro and the Advantage of Preferential Treaties
Shopify's Markets Pro now supports preferential trade agreements, enabling merchants to offer reduced duty rates on eligible international orders. This can lead to lower costs for buyers and increased competitiveness for merchants.
- The United States-Mexico-Canada Agreement (USMCA) allows US merchants to ship goods to Canada and Mexico with reduced import fees when products are manufactured in North America.
- Other preferential treaties can reduce duties for goods shipped between participating countries under qualifying conditions.
Action Steps for Merchants
To benefit from reduced import fees, merchants need to ensure accuracy in setting their products’ country of origin. This is a critical step in enabling preferential treatment through Markets Pro calculations.
Key Changes You Need to Know
- Markets Pro calculates duties using the country of origin specified on each product variant.
- If a country of origin is not provided for a product, Markets Pro defaults to Taiwan.
- Merchants can update the default country of origin by contacting Shopify support.
Why This Matters for Your Business
By leveraging preferential trade agreements, you can lower costs for your international customers and boost global sales. Review your product's country of origin today to unlock these benefits.