Textiles and apparel chapter summary

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Agreement fact sheets

New rules in the Canada-United States-Mexico Agreement (CUSMA) will support Canada’s textile and apparel sector. The CUSMA rules of origin are the criteria used to determine whether a good has undergone sufficient production in the CUSMA region to be eligible for preferential tariff treatment. They ensure that the benefits of the agreement accrue primarily to producers located in the CUSMA countries.

CUSMA will include a new stand-alone chapter on rules of origin and origin procedures for textiles and apparel. This chapter will preserve the market access that Canada has to the U.S. and Mexican markets, including the tariff preference levels from which many Canadian producers benefit. The yarn-forward rules of origin, which are the foundation of the CUSMA rules of origin for textiles and apparel goods, have been maintained.

The CUSMA textiles and apparel chapter will also include unique enforcement provisions to effectively administer the rules of origin specific to the textiles and apparel industry. The chapter includes a streamlined approach to origin-verification visits and enhanced cooperation among the parties. The approach is designed to promote compliance and to allow the customs administrations to prevent fraudulent acts relative to this particular sector from going undetected. With these additional procedures to support the textile and apparel industry in North America, the parties are committing to work together in ensuring that only entitled goods within the region reap the benefits of the Agreement.

Technical summary of negotiated outcomes: Textiles and apparel

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