U.S.-Canada Trade

Gao ID: GGD-93-10R December 22, 1992

GAO provided information concerning the U.S.-Canada and the North American Free Trade (NAFTA) agreements. GAO noted that: (1) NAFTA eliminates the value content requirement for certain products and replaces it with a more general rule of origin based on a change in tariff classification; (2) NAFTA considers goods to be of North American origin if foreign parts and materials do not comprise more than 7 percent of the price or total cost of the goods; (3) vehicles and auto parts will require 60 to 62.5 percent North American content in order to qualify for NAFTA preference; and (4) the U.S. Customs Service and the Department of Commerce need to integrate and proceed with plans to assist industry in resolving trade problems.



The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.