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Tariff Elimination

On November 30, 2018, Canada, the United States and Mexico signed the new Canada-United States-Mexico Agreement (CUSMA), on the margins of the G20 leaders’ summit in Buenos Aires.

Under the North American Free Trade Agreement (NAFTA), tariffs on virtually all originating goods traded between Canada and Mexico were eliminated in 2008, with the exception of Canadian agricultural goods in the dairy, poultry, egg and sugar sectors (which are exempt from tariff elimination).

Elimination of Tariffs under the Canada-United States Free Trade Agreement

Tariffs on qualifying goods traded between Canada and the United States became duty free on January 1, 1998, in accordance with the Canada-United States Free Trade Agreement (CUSFTA) which was carried forward under NAFTA for goods traded between Canada and the United States.

Accelerated Elimination of Tariffs Under the NAFTA

Article 302(3) of the NAFTA provides for the elimination of tariffs earlier than scheduled, subject to consultation and agreement between the three governments. Since the implementation of the NAFTA in 1994 there have been three rounds of accelerated tariff elimination. The first round took place in 1997 for products traded between Canada, the U.S. and Mexico and the second and third rounds took place in 1998 and 2002 for products traded between Canada and Mexico.

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