Canadian Free Trade Agreement Summary

According to the Bank of Canada, removing inter-provincial trade barriers could result in up to two-tenths of a percentage point per year in Canada`s potential output. Buy Canadian ingredients or materials that you can use in your products or services? Get ready for other options. Canadian businesses are already trading with each other, and trade between provinces and territories is worth at least $385 billion a year. The CFTA will benefit businesses across the Canadian economy, expand selection and help drive growth. The Canadian Federation of Independent Businesses interviewed its members prior to the new agreement and found that complex tax rules, high shipping costs and conflicting rules were the main challenges of domestic trade. These include different rules for HGVs (transportation regulations), different rules on food certification and standards in the construction industry. CFTA will work to harmonize these rules across the country. A regulatory reconciliation and cooperation table has also been set up to remove existing barriers and prevent the creation of new barriers. “As a fundamental right, Canadians should be able to practice their profession or trade, operate a business whose goods and services can cross provincial and territorial borders, and freely and without penalty purchase goods and services throughout this great country,” the commission wrote. CfTA has increased the amount of financial sanctions that can be imposed in cases where governments act against the agreement. The fines are population-related and, while the maximum penalty of the Internal Trade Agreement was $5 million, the new maximum penalty is $10 million. Cfta does not address intergovernmental barriers to the alcohol trade, but has established a task force to review the issue and make recommendations to improve trade in Canada. Businesses cannot send alcoholic beverages directly to customers in other provinces or regions, and each jurisdiction limits the amount of alcohol that individuals can import from another province or territory.

Canada is regularly referred to as a trading nation, with total trade accounting for more than two-thirds of its GDP (the second highest level in the G7 after Germany). [1] [2] Of all of this trade, approximately 75% are wiretapped with countries that are part of free trade agreements with Canada, particularly with the United States through the North American Free Trade Agreement (NAFTA). [3] At the end of 2014, bilateral trade in Canada reached $1 trillion for the first time. [4] In December 2014, the federal, regional and territorial governments began negotiations to strengthen and modernize the Internal Trade Agreement (TIA).