TORONTO, Ont. - Canada and Mexico have eliminated a slew of nuisance tariffs that slow about $207 million in annual trade between the NAFTA partners, the two governments have announced.The accelerated...
TORONTO, Ont. – Canada and Mexico have eliminated a slew of nuisance tariffs that slow about $207 million in annual trade between the NAFTA partners, the two governments have announced.
The accelerated tariff cuts, permitted under Section 302 of the North American Free Trade Agreement, went into effect Jan. 1. They give Canadian and U.S. pharmaceuticals, chemicals and batteries duty-free access to the Mexican market, while wiping out domestic tariffs on chemicals, glues, plastics and coffee makers imported from Mexico.
Nuisance tariffs are those duties on imported goods that have been reduced over time to a point so low (generally two per cent or less) that they tend to cost more to administer than they are worth.
Canada and the U.S. eliminated tariffs on all manufactured goods from both countries on Jan. 1, 1998. The new tariff cuts by Canada and Mexico are the latest in a scheduled program to do away with virtually all remaining tariffs between NAFTA partners by 2003. n
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