The Fate of NAFTA

At the same time, the 50 percent rule-of-origin for the auto sector under the FTA was raised to 62.5 percent.4 Furthermore, the auto sector continued to be governed by a complex array of rules and regulations regarding the regional content of automobiles.5 In the case of textiles and apparel, the FTA required specific manu- facturing processes to take place in the free trade area for goods to qual [...] Thus, the next section of the paper sets out the main features of the FTA, paying particular interest to how the FTA embellished or changed the rules in the WTO governing the bilateral trade regime. [...] The first column reports the HS (Harmonized System) industry code; the second column identifies the industry; the third column gives the average ad valorem tariff for that industry; the fourth column provides the max- imum ad valorem tariff for any sub-industry in the given HS category, and the fifth column cites the percentage of all imports in the given HS cat- egory that enter the country duty- [...] The paper now turns fraserinstitute.org The Fate of NAFTA: Possible Scenarios and their Implications for Canada / 27 to a brief consideration of the evidence regarding the impact of the FTA on the Canadian economy. [...] Additionally, a study by Industry Canada (1999) concluded that the growth of the US economy and changes in Canada’s real exchange rate accounted for most of the growth of Canada’s exports to the US over the 1990s, while free trade (including NAFTA) contributed to less than 10 percent of the growth of Canada’s exports to the US over this period.