NAFTA: Regional Impacts
With the FT A, tariffs between Canada and the US are to be reduced to zero over specified time schedules that vary from sector to sector, ranging from immediate elimination to gradual elimination over ten years. Unlike the European Union (EU), Canada and the US each maintains its own set of tariff rates for imports from other countries. Consequently, it has been necessary to establish 'rules of origin'. These rules determine whether a product has enough Canadian and US content in order for it to be permitted to cross the Canada-US border at the reduced FTA rates.