NAFTA partners agree to accelerate tariff elimination

Canada, the United States and Mexico have agreed to accelerate the elimination of NAFTA tariffs on a number of products effective January 1, 2002.

“Tariff acceleration is an industry-driven exercise. This announcement underscores the continuing success of the NAFTA and the importance to industry of tariff-free access. Eliminating Mexican tariffs for certain products on January 1, 2002, rather than January 1, 2003, will make Canadian exporters more competitive in the Mexican
market,” said International Trade Minister Pierre Pettigrew.

Mexico will eliminate tariffs for such products as most motor vehicles, certain wood pulp, railway stock parts, graders and levellers. Canada is eliminating tariffs on motor vehicles originating in Mexico. The estimated value of two-way trade in the goods for this package is approximately $3.1 billion.

Tariffs on qualifying goods traded between Canada and the United States have been duty-free since January 1, 1998.

The United States and Mexico have also agreed on a tariff acceleration package.