Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Amendments to NAFTA Rules of Origin

On Wednesday, May 7, 2008, an agreement entitled “Exchange of Letters constituting an Agreement between the Government of Canada, the Government of the United States of America, and the Government of the United Mexican States, amending Annex 401 (Track III) of the North American Free Trade Agreement between the Government of Canada, the Government of the United States of America, and the Government of the United Mexican States, 17 December, 1992” was tabled before the House of Commons. It is anticipated that this agreement could impact up to $95 billion in trilateral trade.

The agreement is a result of negotiations by the NAFTA Working Group on Rules of Origin, and deals with a package of liberalizing changes to the NAFTA rules of origin. This liberalization gives producers more flexibility in sourcing inputs, which makes it easier for them to qualify for preferential tariff treatment under the Agreement.

The amendments  will affect the following products:  Savory; Allspice; Bay Leaves; Celery Seeds ; Oils, Petroleum Products and Bitumen; Leather;  Sanitary Towels or Tampons, Nonwoven Wipes;  Woven Cotton Boxer Shorts; Aluminium; Ballasts for Discharge Lamps or Tubes; Primary Cells and Batteries;  Electrical Apparatus for Line Telephony and Reception Apparatus for Radio Telephony; Television Cameras, Digital Cameras, and Video Camera Recorders; Radar Apparatus; Televisions; Electric Sound or Visual Signaling Apparatus;  Alarms; Thermionic, Cold Cathode or Photocathode Tubes; Electrical Machines and Apparatus; Rail Locomotives; Truck Assemblies; Locomotive Parts;  Hydrometers and Similar Floating Instruments;  Other Instruments and Apparatus for Physical or Chemical Analysis;  Automatic Regulating or Controlling Instruments; and  Time Switches with Clock or Watch Movement or with Synchronous Motor.

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