Implementation of the North American Free Trade
Agreement (NAFTA) began on January 1, 1994. This agreement will
remove most barriers to trade and investment among the United
States, Canada, and Mexico.
Under the NAFTA, all non-tariff barriers to
agricultural trade between the United States and Mexico were
eliminated. In addition, many tariffs were eliminated
immediately, with others being phased out over periods of 5 to 15
years. This allowed for an
orderly adjustment to free trade with Mexico, with
full implementation beginning January 1, 2008.
The agricultural provisions of the U.S.-Canada
Free Trade Agreement, in effect since 1989, were incorporated
into the NAFTA. Under these provisions, all tariffs affecting
agricultural trade between the United States and Canada, with a
few exceptions for items covered by tariff-rate quotas, were
removed by January 1, 1998.
Mexico and Canada reached a separate bilateral
NAFTA agreement on market access for agricultural products. The
Mexican-Canadian agreement eliminated most tariffs either
immediately or over 5, 10, or 15 years. Tariffs between the two
countries affecting trade in dairy, poultry, eggs, and sugar are
maintained.
