January 3, 2001 (4:50 p.m. EST) No. 3

NAFTA PARTIES AGREE TO ACCELERATE

ELIMINATION OF TARIFFS

International Trade Minister Pierre Pettigrew announced today that the North American Free Trade Agreement (NAFTA) Parties have agreed to accelerate the elimination of tariffs on a number of products, effective January 1, 2001.

Consequently, Mexico eliminated tariffs for such products as batteries, certain pharmaceuticals and chemicals on January 1, 2001, rather than on January 1, 2003, as originally provided for in the NAFTA.

At the same time, as provided for under the Customs Tariff, Canada has eliminated a number of very low tariffs (those less than 2 percent) for products such as certain chemicals, plastics articles, cosmetics, glues and coffee makers. Tariffs on qualifying goods traded between Canada and the United States have been duty-free since January 1, 1998.

"Canadian exporters of these products will benefit from the early elimination of Mexican tariffs," said Minister Pettigrew. "This action demonstrates the continuing success of the NAFTA and its role in improving our access to the Mexican market."

The estimated value of two-way trade in the goods on the Canadian and Mexican lists is approximately $207 million. A complete list of products is available from the Department of Foreign Affairs and International Trade at the following Web site:

http://www.dfait-maeci.gc.ca/nafta-alena/report14-e.asp

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For further information, media representatives may contact:

Sylvie Bussières

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874