How does the NAFTA affect the tariff rates between Canada and the U.S.?
The NAFTA did not affect the phase-out of tariffs, which had been agreed upon under the Canada-U.S. Free Trade Agreement (FTA). The phase-out of FTA tariffs was completed on Jan. 1, 1998. As of that date, virtually all tariffs on Canada-U.S. trade in originating goods were eliminated. Some tariffs remain in place for certain products in Canada’s supply-managed sectors (e.g., eggs, dairy and poultry products). In the U.S., tariffs remain in place for certain products such as sugar, dairy, peanut and cotton.
