North American Free Trade Agreement, 1992 Oct. 7 Tariff Phasing Descriptions

North American Free Trade Agreement, 1992 Oct. 7 Tariff Phasing Descriptions

Canada

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Four main staging categories exist for tariff elimination
under NAFTA:
 A - tariff elimination immediately upon implementation of
the Agreement, i.e., January 1, 1994.
 B - tariff to be eliminated in five equal annual stages,
beginning January 1, 1994 and ending January 1, 1998.
 C - tariff to be eliminated in ten equal annual stages,
beginning January 1, 1994 and ending January 1, 2003.
D - tariff already MFN free.

In addition to the above general phasing categories, the following categories exist for specific cases:

Ex - excluded from tariff elimination.    This category applies to supply-managed goods (dairy, poultry, eggs) and to several tariff items for sugar.

Bl - tariff to be eliminated in six equal annual stages, beginning January 1, 1994 and ending January 1, 1999. (Applies to 43 items in textile tariffs.)

B+ - tariff to be eliminated in seven stages as follows: 20% reduction on January 1, 1994, zero reduction on January 1, 1995, 10% reduction per year for years January 1, 1996 to January 1, 2000 and 30% reduction on January 1, 2001. (Applies to most textile tariffs as well as 3902.1000 and 6403.5900.)

B8 - tariff to be eliminated in two stages as follows:    50% reduction on January 1, 1998 and 50% reduction on January 1, 2001. (Applies to four Mexican tariff items in the paper sector.)

Ba - tariff to be eliminated in five stages as follows: 50% reduction on January 1, 1994 with remaining 50% to be phased out in four equal annual reductions ending January 1, 1998. (Applies to two light truck items.)

 Bg- tariff to be eliminated in five stages as follows:
reduction to the FTA rate on January 1, 1994 and then follow the
FTA C phasing schedule ending January 1, 1998.    (Applies to
Canadian agricultural tariff items for Mexico).
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