Summary: Because provisions of the four-year-old U.S.-Canada Free Trade Agreement are complex and long term, the agreement's precise effect on U.S. business cannot yet be determined, but duties have been already eliminated on some products and are being phased out on others, and trade has risen by more than 15 percent. Government agencies in the United States and Canada have undertaken steps to implement the agreement and have often cooperated in helping businesses learn about its provisions. Problems have included border delays and difficulties in complying with Canadian product standards and technical requirements. Some U.S. businesses have encountered problems in complying with the agreement's rules of origin and in completing the required Exporter's Certificate of Origin. Efforts are under way to improve federal coordination in promoting trade, and some interest exists in establishing a single, centralized source of information on and assistance with the agreement. Although the Customs Service is coordinating implementation of the agreement and related Customs commercial activities along the northern border, the agency has decided to assign the project limited responsibilities and staff.
