How Global SMBs Can Harness The Benefits of FTAs

In today’s rapidly evolving global economy, Free Trade Agreements (FTAs) have become one of the most powerful yet underutilised tools for small and medium-sized businesses (SMBs) seeking international growth. By reducing trade barriers, opening access to new markets, and providing legal and operational stability, FTAs empower businesses to expand more efficiently and competitively across borders.  

Closer to home, regional frameworks like the Regional Comprehensive Economic Partnership (RCEP) in Asia, or cross-continental pacts such as the Pacific Alliance-Singapore Free Trade Agreement (PASFTA) connecting to Latin America, create valuable pathways for SMBs to reach new customers, diversify supply chains, and strengthen their global presence. 

The Core Advantage: Tariff Reduction and Beyond 

FTAs are not just about eliminating tariffs—they unlock a full spectrum of financial, operational, and strategic benefits that strengthen a company’s competitiveness on the world stage. 

1. Lower Tariff Costs 
The most immediate benefit is tariff reduction or elimination. For SMBs exporting goods internationally, the savings can be substantial. A reduction from a 20% import tariff to zero can translate directly into improved margins, making products more competitive in global markets. 

2. Better Market Access for Services
FTAs increasingly extend beyond goods to cover services and the digital economy. This means companies in sectors such as IT, fintech, marketing, and logistics can access foreign markets more easily, often with fewer restrictions on data flows, licensing, and local representation. 

3. Investment and Intellectual Property Protection
Modern FTAs include provisions that safeguard investments, ensure fair treatment, and protect intellectual property (IP). These guarantees provide confidence for SMBs investing in or partnering with overseas entities.

4. Access to Government Procurement Opportunities
Many FTAs open the door for SMBs to bid on public sector contracts abroad—previously accessible only to local firms. This can be a significant new revenue channel for companies with niche expertise or technology. 

New Horizons: Emerging Opportunities for Global SMBs 

As global trade patterns evolve, new FTAs—such as the Regional Comprehensive Economic Partnership (RCEP) in Asia-Pacific or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)—are creating unprecedented opportunities across continents. Similarly, agreements like the Pacific Alliance FTA (covering Chile, Colombia, Mexico, and Peru) are connecting businesses to dynamic markets in Latin America with a combined GDP of over US$2.7 trillion. 

Key Benefits for SMBs under FTAs:

From Asia to Europe to the Americas, SMBs that strategically leverage FTAs are better positioned to diversify revenue streams, reduce market risk, and accelerate international growth. 

• Strategic Implementation for Success 

Leveraging an FTA is not automatic; it requires a systematic internal strategy: 

• Internal Processes: Accurately classify your goods using Harmonized System (HS) codes and identify which FTAs apply to your exports. Additionally, ensure all shipments are backed by valid Certificates of Origin to qualify for preferential tariff rates. 

• Staff Training: Educate your sales and procurement teams on how to leverage FTA advantages—whether it’s pricing products more competitively or sourcing materials from FTA partner markets to meet the rules of origin. 

• External Assistance: Partner with Customs brokers or FTA consultants to navigate complex documentation. Government export promotion agencies in many countries also provide training and advisory services for SMBs. For instance, in Singapore, Enterprise Singapore offers support schemes, like the Market Readiness Assistance (MRA) Grant, which can cover eligible costs for FTA consultancy services. 

Optimising Global Trade with SUNRATE's Financial Solutions

Tariff savings earned through FTAs can be quickly eroded by inefficient, slow, or costly cross-border payments. As SMBs expand globally, having a secure, efficient, and flexible financial infrastructure is crucial to maintaining profitability and operational agility. 

This is where a unified payment platform like SUNRATE adds value, complementing the benefits of FTAs: 

• Preserve Margins with Competitive FX Rates

Convert and manage international revenue efficiently with real-time, transparent foreign exchange rates—ensuring tariff savings aren’t lost to hidden currency conversion fees.

• Simplify Multi-Currency Management

Hold and manage funds in multiple currencies across key markets, streamlining operations in regions covered by major FTAs such as RCEP, CPTPP, or the EU-UK Trade Agreement.

• Direct Multi-Currency Settlement

Pay and receive funds in 15+ currencies directly, reducing reliance on intermediaries and cutting transaction costs across regions like Europe, the Americas, and Asia.

• Accelerate Global Payments

With reach across 190+ countries and support for 130+ currencies, SUNRATE’s intelligent network routing ensures fast, reliable international payments via local settlement networks.

• Mass Payouts and API Integration
Automate high-volume supplier or contractor payments globally, streamline recurring transactions, and integrate SUNRATE’s APIs to align with your financial workflows.

• Top-Tier Security and Compliance
Certified under PCI DSS Level 1, SUNRATE ensures enterprise-grade data protection and compliance across every transaction.

FTAs empower SMBs to compete on a global scale, reduce costs, and access new markets. Yet, the real advantage lies in combining strategic trade benefits with financial agility. 

By integrating the opportunities provided by international FTAs with SUNRATE’s global payment and treasury management solutions, SMBs can unlock sustainable growth, resilience, and competitiveness in an increasingly interconnected economy. 

To get started and partner with a solutions provider that can help your business optimise payments and help you scale both locally and globally, open a SUNRATE account today or contact our sales team.