General Overview

The North American Free Trade Agreement ("NAFTA") was signed on December 17, 1992 by:

• Canadian Prime Minister Brian Mulroney

• Mexican President Carlos Salinas de Gortari

• U.S. President George Bush

NAFTA was entered into force on January 1, 1994, as part of Uruguay Round.

NAFTA is a preferential trade agreement between Canada, the United States and Mexico. It reduces the duties that you pay for goods originating in the NAFTA territory.

It is important to understand that NAFTA is a preferential trade agreement, and not a free trade agreement. A free trade agreement establishes a common customs territory, such as that established by the creation of the European Union. Once a good enters into that territory, it can transit freely throughout the common area. With NAFTA, it provides an elimination of Customs duties, however, your goods are still subject to the scrutiny of the Customs process.

Just because a product is made or assembled in the US, Canada or Mexico, it does not mean that it qualifies for NAFTA tariff reductions.

A product that does not qualify for NAFTA can still be shipped into Canada or Mexico, however, it would not qualify for the benefits of NAFTA.

NAFTA established complex rules that must be followed in order to realize the benefits of NAFTA. The exporter or producer holds the main responsibility for complying with all of the complex NAFTA rules, however, the importer must comply with all of the import laws of their country, as well as with any components of NAFTA that apply to them.

To find out more about your NAFTA responsibilities, please click on the links under Exporters and Importers to the right.