The United States secured new framework trade agreements last week that would lower one of its highest country-specific tariff rates while allowing certain duty exemptions for four nations in Central and South America. The announcements, reported by SupplyChainDive, came the same week the U.S. formalized a trade-related agreement with South Korea, cementing provisions from a framework pact the two countries reached in July.

Read also: U.S. Announces Trade Frameworks with Argentina, Ecuador, El Salvador, and Guatemala

In a framework agreement with Switzerland and Liechtenstein, the U.S. said it would slash the current 39% tariff charged to imports of Switzerland that has been in place since early August. The U.S. plans to cap tariffs on imports from Switzerland and Liechtenstein at 15%. Goods from Switzerland had been subject to a 39% country-specific levy since Aug. 7, when President Trump installed a slew of reciprocal tariffs.

Should the deal be finalized, the two European nations would remove duties on all U.S. industrial goods, seafood and some agricultural products. The countries will also combine to invest $200.3 billion in the U.S. over the next five years, with Switzerland contributing $200 billion. One third of the investments are expected to be made in 2026.

Agreements in the Western Hemisphere

The White House also said it secured pacts with Argentina, Ecuador, El Salvador and Guatemala with a goal of boosting trade and securing supply chains in the Western Hemisphere. The U.S. plans to finalize the deals with the four countries in the coming weeks.

As part of a framework agreement with Argentina, the U.S. said it would eliminate reciprocal tariffs for “certain unavailable natural resources” as well as non-patented materials used for pharmaceutical production. Argentina plans to expand market access for a swath of U.S. products, including medicine, chemicals, machinery, information technology goods, medical devices, motor vehicles and a range of agricultural products.

The U.S. and Ecuador settled on a framework for reciprocal trade that included Ecuador removing or reducing tariffs on agricultural exports to the U.S. The South America country agreed to lower or eliminate tariffs on tree nuts, fresh fruit, pulses, wheat, wine, and distilled spirits. The U.S. and El Salvador agreed to a reciprocal trade framework in which El Salvador committed to streamlining regulatory requirements and approvals for U.S. exports, including vehicles and automotive parts built to U.S. safety and emission standards.

The U.S. and Guatemala agreed to a reciprocal trade framework that aims to reduce trade barriers, support regulatory cooperation and boost agricultural trade. Guatemala agreed to address non-tariff barriers, including streamlining regulatory requirements and approvals for U.S. pharmaceutical products and medical devices.

Source: IndexBox Market Intelligence Platform