Canada-United States Free Trade Agreement

Canada-United States Free Trade Agreement is the bilateral trade agreement signed January 2, 1988 and in force from January 1, 1989 that phased out tariffs between the two countries before NAFTA superseded it in 1994.

1989–1994 International United States, Canada Pub. L. 100-449

What it requires

It eliminated tariffs on originating goods in stages over ten years, by January 1, 1998, using rules of origin based mainly on change in tariff classification, and liberalized services and investment. It created binational panels to review antidumping and countervailing duty decisions. NAFTA suspended it from January 1, 1994, and USMCA now governs US-Canada trade, so it imposes no current obligations.

Why it matters

CUSFTA started the integration of US and Canadian supply chains that USMCA continues, and its tariff-free trade supported cross-border models in which one warehouse serves both countries. Many Canadian brands built US distribution through warehouses near crossings such as Buffalo and Detroit. It also introduced the binational panel review still used under USMCA Chapter 10, which matters when antidumping duties affect goods such as softwood lumber.

Related laws

Sources

Not legal advice.