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<title>NAFTA PARTIES AGREE TO ACCELERATE ELIMINATION OF TARIFFS</title>
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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong>January 3, 2001 <em>(4:50 p.m. EST)</em> No. 3</strong></font></p>
<p align="CENTER"><font face="Arial"></font><font face="Arial" size="+1"><strong>NAFTA PARTIES AGREE TO ACCELERATE </strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>ELIMINATION OF TARIFFS</strong></font><font face="Arial"></font></p>
<p><font face="Arial">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.</font></p>
<p><font face="Arial">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.</font></p>
<p><font face="Arial"> 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.</font></p>
<p><font face="Arial">"Canadian exporters of these products will benefit from the early elimination of
Mexican tariffs," said Minister Pettigrew<ins>.</ins> "This action demonstrates the continuing
success of the NAFTA and its role in improving our access to the Mexican market."</font></p>
<p><font face="Arial">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:</font></p>
<p><a href="https://bac-lac.wayback.archive-it.org/web/20070220202200/http://www.dfait-maeci.gc.ca/nafta-alena/report14-e.asp"><font face="Arial">http://www.dfait-maeci.gc.ca/nafta-alena/report14-e.asp</a></font></p>
<p align="CENTER"><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">Sylvie Bussières</font></p>
<p><font face="Arial">Office of the Minister for International Trade</font></p>
<p><font face="Arial">(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
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