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 Trade Agreements/Preferential Duty ProgramsWhat is the Compact of Free Association (FAS)? The Compact of Free Association (FAS) is a program that provides for duty-free entry of certain merchandise into the United States from freely associated states of the United States. The recipient states are the Marshall Islands and the Federated States of Micronesia (FSM). The Compact went into effect on November 3, 1986. It has no termination date. However, certain significant financial and programming assistance provided in the Compact expired on November 3, 2001. The U.S. periodically negotiates with FSM to renew these provisions, and make changes.
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