Why Understanding International Trade Agreements Can Save You Money on Shipping from Canada

Why Understanding International Trade Agreements Can Save You Money on Shipping from Canada.

Introduction

Shipping goods and parcels can be a costly expense for individuals and businesses. While there are numerous factors that contribute to shipping fees, one of those is understanding international trade agreements between Canada and its partners. It may not be obvious at first how Canada being part of a free trade agreement leads to lower shipping costs, but read on as this blog outlines the major reasons. And in the process we introduce Secureship, a Canadian online shipping retailer, whose intuitive platform will find you further savings when shipping from Canada to overseas destinations.

Table of Contents

• International Trade Agreements
• Saving Money
• Secureship
• Conclusion

International Trade Agreements

An international trade agreement is a legally binding contract between two or more countries that facilitates trade and promotes commerce between those nations. These agreements aim to increase economic cooperation, stimulate growth, create jobs, and enrich the participating countries.

Canada is party to 15 separate trade agreements with 50-plus countries that span the globe. They include the USMCA (United States Mexico Canada Agreement); the CPTPP (with 10 trans-Pacific nations); CETA (with the 27 nations of the European Union); plus a number of bilateral agreements with the United Kingdom, South Korea, and Chile, to name a few.

The advantages of these agreements to Canada are enormous as they comprise some of the world’s largest economies (U.S.A., U.K., Germany – as part of the EU, which in itself is the world’s largest trading bloc and Canada’s second largest trading partner). So, understanding who are Canada’s close trade partners and the terms of the agreements between us could lead you and your company to increased overseas sales. Which would mean more and larger shipments. And bulk shipments provide cost effectiveness over smaller, more frequent consignments bound for foreign destinations.

Saving Money

How does a free trade agreement between Canada and another country save you shipping fees? Please read on.

Duties and taxes

Countries apply duties and taxes to incoming goods to protect their local industries and as a source of government revenues. So, one aspect of free trade agreements is the lowering or elimination of duties on goods sold between Canada and its trading partners. While duties are typically paid by the recipient, they do not per se directly affect the cost of shipping a parcel by the shipper. But duty-reduced goods lead to more customers and encourage each customer to order more products.

And with larger shipments come lower shipping expenses due to economies of scale.

Other cost savings

Trade agreements also streamline customs procedures and documentation requirements. Cost savings are realised because goods clear customs quicker, so handling and storage fees are less. And if your staff spend less time completing documents and filing paperwork, that too lowers shipping fees by reducing overhead costs.

When trade pacts harmonize regulatory standards, both parties apply the same safety and health requirements on the goods. Therefore, all personnel can assess that goods meet regulations in less time. And again, that lowers labour costs, which saves your firm money .

Secureship

In addition to understanding international trade agreements, Secureship can also help you save time and money. Our intuitive online platform will provide you a range of shipping options in minutes while our bulk buying arrangements with well known carriers (Purolator, FedEx, UPS) will reduce shipping charges by as much as 50%.

Further, we have assembled a wealth of information on a range of topics. Specifically, our Country Shipping Guides provide a comprehensive overview of the importation rules and regulations for 140-plus countries. You will find information concerning the quantity and monetary limits for a span of products; a list of restricted and prohibited goods; required shipping documents; and duty and tax rates on commonly shipped goods.

Conclusion

Canada has formed trading agreements with 50-plus nations that surround the globe. Some of those states boast large economies and wealthy citizens, and have been our major trade partners for decades (the European Union, the U.S.A., the United Kingdom, Germany, Japan). Free trade agreements lower duties and taxes, which means recipients pay less for goods and leads to more customers for you, which provides economies of scale for your shipments.

But there are other tools available to you to lower shipping costs – Secureship. This Canadian online shipping retailer can offer much lower fees through its bulk buying power with carriers. As well, its website supplies specific Country Shipping Guides that cover detailed importation rules and regulations for 140-plus countries.