Exporting to the United States under NAFTA

 Exporting to the United States under NAFTA

When thinking of doing business beyond Canada's borders, the best place to start could be next door. The United States is Ontario's largest market for good reasons. Under the North American Free Trade Agreement (NAFTA), the U.S. market is more accessible to Canadian exporters.

Entering the United States

Beginning with the FTA, the two governments have been streamlining the process for temporary business entry into the United States. You should check the latest requirements in terms of documentation to present.

Carry with you any correspondence indicating that your are entering the United States for developing business from a Canadian base or to provide a contractual service for which an agreement has already been reached. Keep in mind that U.S. Immigration is concerned about people going across the border looking for jobs/employment. The border crossing process is being expedited through several multiple-entry visa options.

Professional Qualifications

Under NAFTA, professional associations from the three countries are to work together to establish standards for mutual recognition of professional credentials. Some professions (e.g., architects, engineers) have already done so with the United States. Check with your professional association on the status of such negotiations.

Intellectual Property Rights

NAFTA provides extensive protection for patents, trademarks and trade secrets. It is the first trade agreement to offer protection for trade secrets, which can include formulas, customer lists and production processes. The Agreement also contains extensive provisions on intellectual property enforcement, including civil and administrative procedures, provisional remedies, criminal penalties and border enforcement mechanisms.

Further information may be obtained on intellectual property matters by contacting the Intellectual Property Directorate, Industry Canada.

Government Procurement

Under NAFTA there are greater opportunities for Canadian firms to sell to the Mexican and U.S. governments. For example, under the Free Trade Agreement, procurement disciplines applied only to goods purchased by federal government departments.

NAFTA, however, expands the scope of obligations to include services and construction, lowers the threshold for competitive bidding, expands the coverage to include more U.S. departments and agencies and includes Mexican government purchases.

Like the FTA, NAFTA does not apply to procurement by provincial, state, county and municipal governments.