Tariffs. A schedule is created to eliminate all tariffs and nontariff trade barriers within 10 years, beginning Jan. 1, 1989. All products will be assigned to one of three categories in which tariffs will be eliminated within one, five or 10 years.
Agriculture. Eliminates all agricultural tariffs within 10 years and eliminates license requirements for U.S. wheat and grain shipments to Canada. Both nations agreed to exempt each other from meat-import laws.
Energy. Broad agreement to assure "freest possible" energy trade between the two nations, including Canadian access to oil from Alaska's North Slope.
Automotive. Eliminates all automotive tariffs over the next 5 to 10 years. The two countries agreed to keep the existing auto pact, which allows General Motors, Ford and Chrysler to manufacture cars and parts in Canada for duty-free sale in the United States, but denied any similar future benefits to the Japanese or Koreans.
Services. Establishes the first comprehensive international guidelines for dealing with the products of service industries, including a binding mechanism for settling disputes.
Investment. Canada agrees to end its requirement that foreign investors give Canadians a minimum equity position. In addition, Canada agreed to make permanent its policy of not screening new business investments and to significantly reduce its screening of direct acquisitions.
Disputes. Creates a dispute-settlement mechanism in which disagreements that cannot be resolved automatically will be referred to arbitration. National antidumping and countervailing duty decisions may be appealed to a binational settlements panel.