Here is Part “F” of my series, “International Trade Alphabet Soup” that will periodically list and provide context for key acronyms and international trade terms:

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Shutterstock image

FAO – Food & Agriculture Organisation is an agency of the United Nations whose work includes helping developing countries, in particular, to structure trade policies to achieve enhanced food security.

FAS – Free Alongside Ship (name of port) is an international trade term which, used in a sales contract, requires the seller to deliver the goods to the  named port alongside (i.e. within reach of a ship’s lifting tackle) the vessel designated by the buyer, at which point transportation costs and risk of loss transfer from seller to buyer.

FAZ – Foreign Access Zone is the Japanese equivalent of a Free Trade Zone (see FTZ below).

FCA – Free Carrier  (name of place) is an international trade term which, used in a sales contract, requires the seller to deliver the goods, cleared for export, into the charge of the carrier at the  named place, at which point costs and risk of loss transfer from seller to buyer. This term may be used in relation to any mode of cross-border transportation.

FCPA – Foreign Corrupt Practices Act is U.S. anti-bribery legislation which generally prohibits and imposes civil and criminal penalties for the payment of bribes to foreign officials to assist in obtaining or retaining business.

FDI – Foreign Direct Investment is an investment made by a company or entity based in one country that establishes a long-term interest or effective management control over a company or entity based in another country.

FOB – Free on Board (name of port) is an international trade term which, used in a sales contract, requires the seller to deliver the goods, cleared for export, on board the vessel designated by the buyer, at which point costs and risk of loss transfer from seller to buyer.

FSC – Foreign Sales Corporation is a corporation that, under a defunct provision of U.S. tax codes, could secure U.S. tax exemption on a portion of earnings from the sale of U.S. products in foreign markets. In a case brought by the European Union (EU), the World Trade Organisation (WTO) determined that this tax exemption provided an illegal subsidy to U.S. exporters and the provision has been repealed.

FTA – Free Trade Agreement is an agreement among two or more countries to remove duties on goods and other barriers to trade amongst themselves. The United States has entered into 14 FTAs with 20 countries.

FTA – Free Trade Area is established as a result of an agreement among two or more countries to remove duties on goods and other barriers to trade amongst themselves.

FTAA – Free Trade Area of the Americas was a failed attempt to negotiate a regional free trade agreement among the free market economies of the Western Hemisphere. Negotiations were abandoned in November, 2004.

FTZ – Free Trade Zone is a specially-designated zone within a country where duty-free importation is permitted of raw materials, components, sub-assemblies, semi-finished or finished goods for storage, assembly, processing, and typically re-exportation. The goods may enter the country’s customs territory at a later date only after paying the required duties. Within the United States they are known as Foreign Trade Zones.