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<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">January 11, 2005 <i>(1:25 p.m. EST)</i><br>
No. 4</span></span></span></p>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 14pt"><span style="font-weight: bold">NAFTA PARTNERS CONTINUE TO LIBERALIZE RULES OF ORIGIN</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">International Trade Minister Jim Peterson announced the implementation of further
measures to help Canadian businesses with the reduction of export-related transaction
costs in the NAFTA region.</span></span></p>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"> </span></span></p>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">“This is a perfect example of how NAFTA continues to evolve to reflect today’s realities.
It is important that the NAFTA rules of origin continue to reflect the commercial reality of
North America today,” said Minister Peterson. “Making the rules of origin more liberal
and easier to comply with will increase the volume of duty-free trade among the NAFTA
partners.”</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">On January 1, 2005, Canada and the United States implemented measures to liberalize
the NAFTA rules of origin applicable to tea, spices, carrageenan, seasonings, precious
metals, speed drive controllers and their printed assemblies, household appliances,
loudspeakers, thermostats, parts for various machinery and equipment, and toys. The
measures will come into force in Mexico following ratification by the Mexican Senate.</span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">Rules of origin are used to determine whether a good is eligible for preferential tariff
treatment under NAFTA. The decision to continue to work on liberalizing the rules of
origin was taken by the NAFTA Trade Ministers at their October 7, 2003, meeting in
Montreal. These changes will make it easier for manufacturers of these products to
meet the NAFTA rules of origin and to qualify for duty-free treatment under NAFTA.
This will increase the competitiveness of Canadian exporters. It has been estimated
that these products represent US$20 billion in total trilateral trade.<span style="background-color: #00ff00"></span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">The new rules of origin were developed jointly by the governments of Canada, the
United States and Mexico in consultation with industry. This is part of a continuing effort
to liberalize NAFTA rules of origin. For example, in 2003, NAFTA rules of origin were
liberalized for seven products including alcoholic beverages and petroleum/topped
crude oil. Discussions are underway with the United States and Mexico on further
changes to rules of origin affecting a broader range of products. </span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt">The complete NAFTA Annex 401 on Specific Rules of Origin is available at
</span></span><a href="https://bac-lac.wayback.archive-it.org/web/20070220185035/http://www.international.gc.ca/nafta-alena/ann-401-en.asp"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.international.gc.ca/nafta-alena/ann-401-en.asp</span></span></span></span></a><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">.</span></span></span></p>
<br>
<p style="text-align: center"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">- 30 -</span></span></span></p>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">For further information, media representatives may contact:</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Jacqueline LaRocque<br>
Director of Communications<br>
Office of the Minister of International Trade<br>
(613) 992-7332</span></span></span></p>
<br>
<p><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000">Media Relations Office<br>
International Trade Canada<br>
(613) 995-1874<br>
</span></span></span><a href="https://bac-lac.wayback.archive-it.org/web/20070220185035/http://www.international.gc.ca/"><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #0000ff"><span style="text-decoration: underline">http://www.international.gc.ca</span></span></span></span></a><span style="font-family: 'Arial', sans-serif"><span style="font-size: 12pt"><span style="color: #000000"></span></span></span></p>
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