U.S.-Canada Trade

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.