Definition

NAFTA

The North American Free Trade Agreement (NAFTA) entered into effect for Canada and Mexico on January 1, 1994. All qualifying goods enter the US duty-free. In order to qualify for duty-free treatment under NAFTA, textile and apparel products must be NAFTA originating. This means the product is assembled in one of the three NAFTA countries, using raw materials produced in the NAFTA countries (the original yarn-forward standard), or entered under special Tariff Preference Levels (TPLs). NAFTA includes separate TPLs for Canada and Mexico, covering cotton, wool, and man-made fiber apparel, yarns, fabrics, and made-ups. These TPLs do not expire.