Much has been made by opponents of the deal of two provisions: the five - year
tariff phaseout and the more flexible rules of origin.
While critics of the deal focus on comparing Canada's
tariff phaseout period on vehicles to the longer tariff cut schedule offered by the United States, they fail to acknowledge that the important bilateral concession offered by the United States was the immediate elimination of U.S. duties on auto parts — something that will benefit American assembly plants as well as TPP parts makers.
What's more, tariff rates and structures differ between the United States and Canada (in fact, Canada's 6.1 - per - cent tariff is 2 1/2 times higher than the U.S. passenger vehicle tariff), so there's no compelling reason why
tariff phaseouts need to be the same.
Not exact matches
But we accept the five - year
phaseout as a far better outcome than the highly protectionist
phaseout of U.S.
tariffs, which will delay the elimination of the 25 - per - cent «chicken»
tariff applied to pickup truck imports in the United States for 30 years.