How to Comply With U.S.-Canada Trade Agreements

U.S.-Canada trade agreements are governed by the North American Free Trade Agreement (NAFTA). The North American Free Trade Agreement provides for duty free trade between the United States, Canada and Mexico. This ensures a smooth flow of goods and services between these three countries and promotes better diplomatic relations on the North American continent. Your business may be able to benefit by learning how to comply with U.S.-Canada trade agreements.

Instructions

Difficulty: Moderate

Comply With U.S.-Canada Trade Agreements

1. Enjoy unlimited investment opportunities in Canada. The few investment restrictions that existed between the United States and Canada were eliminated by the North American Free Trade Agreement. Now, U.S. businesspeople can put their money into any Canadian business they choose. They can also put up money for the development of new businesses in Canada.
2. Benefit from greater corporate mobility. Under the North American Free Trade Agreement, it is easier than ever before to set up branch offices or manufacturing facilities for your company in Canada. Canadian companies can do the same thing in the United States. This may save money for companies that have a lot of travel across the border for business purposes.
3. Feel secure knowing your intellectual property rights are protected in Canada. One of the provisions of the North American Free Trade Agreement was that all three countries involved would respect intellectual property rights on products imported from member nations.
4. Access media markets in Canada with ease. Under the North American Free Trade Agreement, U.S. companies are entitled to the same access to Canadian media markets that Canadian companies enjoy.
5. Trade in almost any product under the sun without paying tariffs. The North American Free Trade Agreement puts virtually no restrictions on the types of goods and services that can be exchanged duty free across the U.S.-Canada border.

Tips & Warnings

• The North American Free Trade Agreement is one of the easiest to comply with. It is among the most liberal in the world. Doing business with Canada under this agreement is almost no different than if your company was a Canadian company.
• Check the U.S. Department of State website frequently to keep abreast of any updates or changes to the North American Free Trade Agreement (see Resources below).
• Read all about the provisions of NAFTA at the website of the Office of the United States Trade Representative (see Resources below).