Canada to Allow Vehicle Imports from Mexico

Canada has passed legislation to allow vehicle imports from Mexico.  Bill S-5, An Act to amend the Motor Vehicle Safety Act and the Canadian Environmental Protection Act, 1999, received Royal Assent on March 23, 2011.  With the Canadian government moving towards an election and a halt to all new legislation, this Bill managed to get through the system. 
  
The Bill is part of Canada's obligation to put the North American Free Trade Agreement (NAFTA) into practice.  Canada has a system to administer importation of vehicles from the United States, which was introduced after the two countries entered into their own free trade agreement more than two decades ago.  When Mexico joined the agreement and NAFTA came into being, Canada had to pass additional legislation to allow imports from Mexico.    This law has now been passed.  The details still have to be worked out and it will be several years before vehicles can actually come into Canada from Mexico, but at least the governing legislation is now in place.  The legislation will become effective when regulations are passed by government.  The legislation will phase in imports from Mexico, first allowing older vehicles and then gradually allowing newer vehicles over the next decade.  

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