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Reciprocity was a free trade agreement between the United States and Canada. It mutually reduced import duties and protective tariffs on certain goods exchanged between the two countries. However, it was suspended in 1948 after both countries signed the General Agreement on Tariffs and Trade (GATT) and was superseded in 1994 by the North American Free Trade Agreement (NAFTA) between Canada, the US and Mexico.
The standard applies to a vehicle or combination of vehicles that transport cargo on a highway and that exceed a registered gross vehicle weight of 4,500 kilograms. The standard also applies when an intermodal container is used to transport cargo.
Exception. Reciprocity does not always apply. Differences do exist and additional training may be needed. If a dangerous good is regulated in Canada, but not in the United States, it must be shipped according to the TDG Clear Language Regulations. Likewise, if a hazardous material is regulated in the United States, but not in Canada, it must be shipped according to 49 CFR.
NAFTA provides coverage to services except for aviation transport, maritime, and basic telecommunications. The agreement also provides intellectual property rights protection in a variety of areas including patent, trademark, and copyrighted material. The government procurement provisions of the NAFTA apply not only to goods but to contracts for services and construction at the federal level. Additionally, U.S. investors are guaranteed equal treatment to domestic investors in Mexico and Canada.
NAFTA allows your company to ship qualifying goods to customers in Canada and Mexico duty free. Goods can qualify in several ways under NAFTA’s rules of origin.This might be due to the products being wholly obtained or produced in a NAFTA party or because according to the product’s rule of origin there is sufficient amount of work and materials required in a NAFTA party to make the product become what it is when its exported.