The Movement of Goods Working Group

Canada, the United States and Mexico have long cooperated under the North American Free-Trade Agreement (NAFTA) to reduce the rules of origin requirements on goods shipped between the three countries. Rules of origin determine whether such goods are eligible for duty-free treatment under NAFTA. Some of the rules specify the minimal level of North American content a product eligible for duty-free treatment should have, for example. Proposed changes, resulting from industry requests or based on improvements achieved in subsequent free trade agreements, are subject to public consultation.

Liberalizing the rules of origin would address sourcing issues and lower the transaction costs of trade, by liberalizing the requirement for obtaining duty-free treatment under NAFTA.