North American Free Trade Agreement (NAFTA)

To Whom Does This Apply?

Eligible Area

All Canadian provinces and territories.

Eligible Activities

Trade with Mexico and the United States

Summary

Designed to foster increased trade and investment among the partners, NAFTA contains an ambitious schedule for tariff elimination and reduction of non-tariff barriers, as well as comprehensive provisions on the conduct of business in the free trade area. these include disciplines on the regulation of investment, services, intellectual property, competition and the temporary entry of business person.

The NAFTA has been a tremendous success in making North America one of the most efficient, integrated and competitive regions in the world. By strengthening the rules and procedures governing trade and investment on this continent, it has allowed trade and investment flows to skyrocket. More importantly for the citizens of our three countries, the boosted economic activity and production in the region has contributed to the creation of more and better paying jobs.

The key provisions of NAFTA are:

• Elimination of Tariffs: Under NAFTA, a tariff-reduction schedule was worked out for trade with the U.S. and Mexico. As of January 1, 2003, virtually all trade between Canada, Mexico and the United States is duty-free.

• National Treatment: Canada, the U.S. and Mexico treat each others' goods, services, and investors as they treat their own. International investors with investments in Canada are covered by NAFTA if they use Canada as a "home base" to make investments in the U.S. or Mexico.

• Dispute Settlement: One of the principal elements of NAFTA is the establishment of a clear set of rules for dealing with the settlement of disputes. Dispute settlement provisions for countervailing duty and anti-dumping matters are covered under Chapter 19. Chapter 20 of NAFTA includes provisions relating to the avoidance or settlement of all disputes regarding the interpretation or application of NAFTA. There are also special rules for disputes under Chapter 11 (Investment) and Chapter 14 (Financial Services).

• Government Procurement: All three countries have agreed to provide substantially increased access to government procurement opportunities not only in goods, but also in services, including construction services.

• Business Travel: To promote trade in goods and services, Chapter 16 of NAFTA facilitates the cross-border movement of business persons who are citizens of member countries of NAFTA. The provisions within Chapter 16 do not alter a member country's general immigration provisions governing public health, safety and national security, nor do they preclude the requirement for temporary workers to meet licensing or certification requirements respecting the exercise of a profession or the delivery of after-sales service.

• Intellectual Property: NAFTA includes comprehensive coverage of intellectual property rights to encompass standards of rules and enforcement.

Publications

The following publications can be accessed and downloaded (PDF files) from ITCan's Web site:

• The NAFTA at Five Years: A Partnership at Work
• NAFTA Works: Six Years, Three Countries, One Partnership
• NAFTA at Seven: Building on a Successful Partnership
• NAFTA at Eight: A Foundation for Economic Growth
• NAFTA at 10: A Preliminary Report
• NAFTA: What it's all about

Taxation and Customs

The Revenue Canada Agency will provide answers to specific tax-related questions and Canada Border Services Agency will answer questions related to customs (see the documents Business Window and Tariff Treatment - Rules of Origin -NAFTA).

Information

For more information pertaining directly to NAFTA, visit the Frequenty Asked Questions and Answers page as well as the Canada and the North American Free Trade Agreement pages on the ITCan's Web site.

For information related to other regional or bilateral agreements, please see the Regional and Bilateral Initiatives page on ITCan' s Web site.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

Ontario Contact(s):
For customs-related information contact:
Customs Border Services - BIS
Canada Border Services Agency
1st Floor
1 Front Street West
Toronto, Ontario  M5J 2X6
Telephone: (905) 612-7937
Toll-free (information): 1-800-461-9999
Web site: http://www.cbsa-asfc.gc.ca/eservices/bis/menu-e.html