In addition, free trade is now an integral part of the financial and investment systems. U.S. investors now have access to most foreign financial markets and a wider range of securities, currencies and other financial products. The World Trade Organization unilaterally designates preferential trade agreements and reciprocal trade agreements as regional trade agreements. Unlike a customs union, parties to a free trade agreement do not hold common external tariffs, i.e. different tariffs, or other policies concerning non-members. This function allows non-parties to free themselves as part of a free trade agreement by entering the market with the lowest external tariffs. Such a risk requires the introduction of rules for determining which products originate may be preferred under a free trade agreement, which is not necessary for the establishment of a customs union. In principle, there is a minimum processing time leading to a „substantial processing“ of the products, so they can be considered original products. By the definition of products originating in the PTA, the preferential rules of origin distinguish between domestic and non-origin products: only the former are eligible for preferential tariffs provided by the ESTV, which must pay the import duties of the MFN. Governments with free trade policies or agreements do not necessarily abandon import and export controls or eliminate all protectionist policies. In modern international trade, few free trade agreements lead to completely free trade. The manufacture of products in the Country of Origin in Switzerland should not be subject to the use of primary materials that do not meet the criteria of the country of origin which are subject to restitution or suspension of customs duties (for example.
B, goods imported and re-exported to the processing facility). This rule does not apply to agreements with Singapore, South Korea, SACU, Canada, Japan, Colombia and Peru. Most (but not all) Swiss free trade agreements contain such a rule. This means that the determination of the country of origin of primary materials from a third country is not taken into account, provided that their value does not exceed 10% of the factory starting price. However, if a percentage rule is established in the list, it cannot be exceeded by the application of the general value tolerance. This is why this tolerance is particularly important for products for which the list provides for a jump in position. The general value tolerance cannot apply to products listed in Chapters 50 to 63 of the harmonized system, nor does it apply to products that have received only minimal processing in Switzerland. Types of accumulation: bilateral accumulation: only with primary subjects of the two free trade partners (bilateral) (for example. B Switzerland-Japan or AELE-COLOMBIA). Diagonal accumulation: possible with primary subjects of several free trade partners, as all apply the same country of origin rules (e.g.B. EU-EFTA-Turkey).
Cumulative euro-med: this is also possible with primary materials from Mediterranean countries, since all the free trade partners concerned apply the same country of origin rules and there are agreements between them.