What should be of immediate concern to the new exporter? The phased elimination of duties on most of our exports to the United States will have a favourable impact on the pricing of those goods.
According to the terms of the North American Free Trade Agreement (NAFTA), some tariff barriers were eliminated immediately while others will be phased out over periods of five, ten and 15 years. Non-tariff barriers such as customs user fees, quotas and licensing requirements will also be eliminated over ten to 15 years.
Trade between Canada and the United States will continue to be governed by the tariff phase-outs negotiated under the provisions of the Free Trade Agreement (FTA). These phase-out schedules are unaffected by NAFTA. As was the case under the FTA, there is an acceleration clause under which tariffs may be phased-out faster than originally negotiated if the three countries agree to such action. If only two countries agree, acceleration takes place only between those two.