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NAFTA
North American FTA&EIA
 Interactive trade indicators

Technical notes for performance indicators
Performance Indicators :
Member Countries

Canada Mexico United States

North American Free Trade Agreement

Status : Signed in 1992 .  In force since 1994
Scope : Regional
Type : FTA & EIA
WTO Notification : GATT Art XXIV, GATS Art V 1993,1995
Agreement text : 
http://www.nafta-sec-alena.org/en/view.aspx?conID=590
Other links : 
http://www.worldtradelaw.net/fta/agreements/nafta.pdf
WTO consideration process : 
http://rtais.wto.org/rtadocs/122/RelatedDocuments/Factual%20Abstract/English/NAFTA%20FA%20(goods).doc
GOODS
Tariffs
Tariffs on products covered by the Agreement were fully eliminated between the Parties as of 1 January 2008.
Accelerated elimination of tariffs was guided by Article 302 (3) of the Agreement.
Rules of Origin
Defined in Chapter 4 of the Agreement. Products can qualify through Tariff Shift, Regional Value Content (RVC) or de minimis.
Product qualification for NAFTA preferential tariff treatments requires accurate HS classification with supporting documentation and official designation of the country of origin documented with NAFTA certificates
Contingency Measures
   Anti - Dumping : Chapter 19 cover review and dispute settlement in antidumping and countervailing matters.
   Countervailing Duties : Under Art 705 on Export subsidies each party retains its rights to apply countervailing duties on subsidized imports. Article 1904 provides for Review of Final Antidumping and Countervailing Duty Determinations
   Safeguards : Chapter 8 refers to Emergencie actions: safeguards.

Standards : 
Notes:
SERVICES
WTO Notification (GATS Art. V)Notified
       Date of notification 01/03/1995

       Consideration Process : 


Liberalization ApproachNegative Lists

Modes Covered
Cross-border supply (Mode1)
Consumption abroad (Mode2)
Commercial presence (Mode3)
Presence of natural persons (Mode4)

Specific Chapters on
Telecommunications
Professional services

Specific Sectors Excluded
Financial services
Air transport

Public Sectors carve-out :

Most Favoured Nation : Binding

National Treatment : Binding

Market Access : Binding

Domestic Regulation :

Subsidies covered by services disciplines : Not covered

Denial of benefits for commercial presence :
          Same as for denial of benefits to investors (see below). Article 1211


Notes :
          


Link to schedules :
INVESTMENT
Scheduling ApproachNegative Lists

Definition of investmentCovers portfolio investment

Most Favoured Nation : Binding
                           
National Treatment : Binding
                           
Fair and Equitable Treatment : Binding
                           
Expropriation : Binding
                           
Board of Directors and executive personnel : Binding

Invester - State arbitration :

Denial of Benefits :
          Article 1113: if Party does not maintain diplomatic relations with the non-party owners of an enterprise, or adopts measures that prohibit transactions with the non-party owners


Additional BIT exists between the parties :
          BIT list I :
                    Status:
          BIT list II :
                    Status:

Notes :
          


Link to schedules :
TRADE FACILITATION
Customs procedures : Yes http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=121; see also http://www.customs.ustreas.gov/xp/cgov/trade/trade_programs/international_agreements/free_trade/nafta/
Customs valuation : Yes Customs Valuation Code means the Agreement on Implementation of Article VII of the GATT, including its interpretative notes
Trade regulations publication and administration (transparency) : No
E-Commerce / Paperless trade : No
Cooperation in trade facilitation : No
OTHER AREAS
Government Procurement : Yes http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=136
Investment : Yes http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=160
Competition Policy : Yes http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/texte/chap15.aspx?lang=en
Intellectual Property : Yes http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=168
Dispute Settlement : Yes The NAFTA directs the governments concerned to seek to resolve their differences amicably through the NAFTA's Committees and Working Groups or other consultations. If no mutually acceptable solution is found, the NAFTA provides for expeditious and effective panel procedures. More details on http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=175
Labor Mobility : No
Labor and Environmental Standards : Yes http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/side.aspx?lang=en&menu_id=36&menu=R
Technical cooperation : No
Institutional mechanism : No The Free Trade Commission, which consists of cabinet-level representatives from the three member countries, is the central institution of NAFTA. Mo9re details on http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/inst.aspx?lang=en
Notes:
http://www.nafta-sec-alena.org/DefaultSite/index.html
RULES OF ORIGIN
Cumulation
Regional cumulation, Article 404 of the Agreement.
Specific Process
Annex 401
Heading Change
De Minimis
Applies to foreign content that is less than 7% of the overall value of the product. Art 405.
Minimum Content
Article 402 of the Agreement. Article 403 for the automotive goods.
Drawback
Article 3003 refers to restrictions on Drawback and duty deferrals.
Http Link
http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=116
Notes
basis for calculation of regional value content 50% net cost - 60% of transaction value
NAFTA
North American FTA&EIA

Member Countries
Canada
Mexico
United States
Total: 3 countries

North American Free Trade Agreement

Status : Signed in 1992 .  In force since 1994
Scope : Regional
Type : FTA & EIA
WTO Notification : GATT Art XXIV, GATS Art V 1993,1995
Agreement text : 
http://www.nafta-sec-alena.org/en/view.aspx?conID=590

Other links : 
http://www.worldtradelaw.net/fta/agreements/nafta.pdf

WTO consideration process : 
http://rtais.wto.org/rtadocs/122/RelatedDocuments/Factual%20Abstract/English/NAFTA%20FA%20(goods).doc
GOODS
Tariffs
Tariffs on products covered by the Agreement were fully eliminated between the Parties as of 1 January 2008.
Accelerated elimination of tariffs was guided by Article 302 (3) of the Agreement.

Rules of Origin
Defined in Chapter 4 of the Agreement. Products can qualify through Tariff Shift, Regional Value Content (RVC) or de minimis.
Product qualification for NAFTA preferential tariff treatments requires accurate HS classification with supporting documentation and official designation of the country of origin documented with NAFTA certificates

Contingency Measures
Anti - Dumping : Chapter 19 cover review and dispute settlement in antidumping and countervailing matters.
Countervailing Duties : Under Art 705 on Export subsidies each party retains its rights to apply countervailing duties on subsidized imports. Article 1904 provides for Review of Final Antidumping and Countervailing Duty Determinations
Safeguards : Chapter 8 refers to Emergencie actions: safeguards.

Standards : 

Notes:


SERVICES
WTO Notification (GATS Art. V)Notified
Date of notification : 01/03/1995
Consideration Process :

Liberalization ApproachNegative Lists

Modes Covered
Cross - Border Supply : Yes
Consumption Abroad : Yes
Commercial Presence Abroad : Yes
Movement of Natural Persons : Yes

Specific Chapters on
Telecommunications : Yes
Professional services : Yes
Specific Sectors Excluded
Financial services : Yes
Air transport : Yes
Public Sectors carve-out :

Most Favoured Nation : Binding

National Treatment : Binding

Market Access : Binding

Domestic Regulation :

Subsidies covered by services disciplines : Not covered

Denial of benefits for commercial presence :
Same as for denial of benefits to investors (see below). Article 1211


Notes:

Link to schedules :

INVESTMENT
Scheduling ApproachNegative Lists

Definition of investmentCovers portfolio investment

Most Favoured Nation : Binding

National Treatment : Binding


Fair and Equitable Treatment : Binding


Expropriation : Binding


Board of Directors and executive personnel : Binding

Invester - State arbitration : Yes

Denial of Benefits :
Article 1113: if Party does not maintain diplomatic relations with the non-party owners of an enterprise, or adopts measures that prohibit transactions with the non-party owners


Additional BIT exists between the parties :No

BIT list I :
Status:
BIT list II :
Status:

Notes :


Link to schedules :

TRADE FACILITATION
Customs procedures : Yes http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=121; see also http://www.customs.ustreas.gov/xp/cgov/trade/trade_programs/international_agreements/free_trade/nafta/
Customs valuation : Yes Customs Valuation Code means the Agreement on Implementation of Article VII of the GATT, including its interpretative notes
Trade regulations publication and administration : No
Use of ICT : No
Mobility of business people : Yes http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/texte/chap16.aspx?lang=en
Freedom of transit : No
Transport and logistics : No
Trade finance : No

OTHER AREAS
Government Procurement : Yes http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=136
Investment : Yes http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=160
Competition Policy : Yes http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/texte/chap15.aspx?lang=en
Intellectual Property : Yes http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=168
Dispute Settlement : Yes The NAFTA directs the governments concerned to seek to resolve their differences amicably through the NAFTA's Committees and Working Groups or other consultations. If no mutually acceptable solution is found, the NAFTA provides for expeditious and effective panel procedures. More details on http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=175
Labor Mobility : No
Labor and Environmental Standards : Yes http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/side.aspx?lang=en&menu_id=36&menu=R
Technical cooperation : No
Institutional mechanism : No The Free Trade Commission, which consists of cabinet-level representatives from the three member countries, is the central institution of NAFTA. Mo9re details on http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/inst.aspx?lang=en

Notes:
http://www.nafta-sec-alena.org/DefaultSite/index.html


RULES OF ORIGIN
Cumulation
Regional cumulation, Article 404 of the Agreement.
Specific Process
Annex 401
Heading Change

De Minimis
Applies to foreign content that is less than 7% of the overall value of the product. Art 405.
Minimum Content
Article 402 of the Agreement. Article 403 for the automotive goods.
Drawback
Article 3003 refers to restrictions on Drawback and duty deferrals.
Http Link
http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=116

Notes
basis for calculation of regional value content 50% net cost - 60% of transaction value
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