Free trade agreements of Canada explained

The free trade agreements of Canada represents Canada's cooperation in multinational trade pacts and plays a large role in the Canadian economy. Canada is regularly described as a trading nation, considering its total trade is worth more than two-thirds of its GDP (the second highest level in the G7, after Germany).[1] [2] Of that total trade, roughly 75% is done with countries that are part of free trade agreements with Canada—primarily the United States through the Canada–United States–Mexico Agreement (CUSMA), and its predecessor the North American Free Trade Agreement (NAFTA). By the end of 2014, Canada's bilateral trade hit Can$1 trillion for the first time.[3] Canada is a signatory to 15 free trade agreements with 51 countries.[4]

Overview

Canada is a founding member of the World Trade Organization (WTO) since 1 January 1995, having been an original GATT member since 1 January 1948.

The North American Free Trade Agreement (NAFTA), which is held with Canada by the United States and Mexico, came into force on 1 January 1994, creating the largest free trade region in the world by GDP. By 2014, the combined GDP for the NAFTA area was estimated to be over Can$20 trillion with a market encompassing 474 million people.

Building on that success, Canada continues to negotiate and has concluded free trade agreements with 51 countries,[4] most recently with South Korea, which represents Canada's first FTA with a partner in the Asia-Pacific region. As of 2018, Canada has also concluded two other significant multilateral trade agreements: the Comprehensive Economic and Trade Agreement (CETA) with the European Union and the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 10 other Pacific-Rim countries.[5] On 21 September 2017, CETA was provisionally applied, immediately eliminating 98% of EU's tariff lines on Canadian goods.[6] Canada is currently the only G7 country to have free trade agreements in force with all other G7 countries. Free trade with the final G7 country, Japan, commenced when the CPTPP entered into force on 30 December 2018.

Free trade agreements

In force or provisionally in force

Current FTAs between Canada and other countries/trading blocs
Agreement name Abbreviation Countries/blocs involved Signed Entered into force
Canada–United States Free Trade Agreement CUSFTA 12 October 1987 1 January 1989
North American Free Trade Agreement NAFTA 17 December 1992 1 January 1994
CIFTA 31 July 1996 1 July 1997
CCFTA 5 December 1996 5 July 1997
CCRFTA 23 April 2001 1 November 2002
CEFTA 26 January 2008 1 July 2009
CPFTA 29 May 2008 1 August 2009
CCoFTA21 November 2008 15 August 2011
CJFTA28 June 2009 1 October 2012
CPAFTA14 May 2010 1 April 2013
CHFTA5 November 2013 1 October 2014
CKFTA 11 March 2014 1 January 2015
CUFTA 11 July 2016 1 August 2017
Canadian Free Trade Agreement (interprovincial trade agreement) CFTA CanadaJuly 1 2017 July 1 2017[7]
CETA 30 October 2016 21 September 2017[8]
Comprehensive and Progressive Agreement for Trans-Pacific Partnership[9] CPTPP,
TPP-11
8 March 2018 30 December 2018
CUSMA Mexico
United States
30 November 2018 1 July 2020
Canada–UK TCA 9 December 2020 1 April 2021

Under Active Negotiation

Canada is negotiating bilateral FTAs with the following countries and trade blocs:

Negotiations ended with no plan to restart

Exploratory discussions

Canada is undertaking exploratory discussions of bilateral or multilateral FTAs with the following countries and trade blocs, although formal negotiations have not yet begun:

Abandoned free trade agreement proposals

Agreement name Abbreviation Countries involved Notes
FTAA Proposed expansion of the North American Free Trade Agreement to all members of the Organization of American States, negotiated from 1994 to 2005. During the 4th Summit of the Americas in 2005, 26 of the countries pledged to meet again in 2006 to resume negotiations but no such meeting took place.
CCA4FTA Twelve rounds of negotiations from 2001 to 2010. When no agreement was reached during the 2010 round, Canada and Honduras decided to pursue bilateral negotiations and concluded a separate bilateral FTA.[17]
TPP Agreement was signed 4 February 2016. Following the withdrawal of the United States' signature on 23 January 2017 the agreement is defunct, and the remaining members instead concluded the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Foreign Investment Promotion and Protection Agreements

A Foreign Investment Promotion and Protection Agreement (FIPA) is an agreement to promote foreign investing.

FIPAs in force

The following is a list of FIPAs in force, including date of entry into force.

FIPAs signed

The following is a list of FIPAs that have been concluded and signed, but have not yet entered into force.[5]

FIPA negotiations concluded

The following is a list of FIPA negotiations concluded, and are not in force. First is the country, then the date it was concluded.[5]

Ongoing FIPA negotiations

The following is a list of FIPA negotiations that have not yet concluded.[5]

See also

Notes and References

  1. Book: A Trading Nation: Canadian Trade Policy from Colonialism to Globalization. Hart, M.. 2003. University of British Columbia Press. 9780774808958. 26 November 2014. 17 August 2021. https://web.archive.org/web/20210817120157/https://books.google.com/books?id=Bmz8icizta4C. live.
  2. Web site: OECD Statistics. OECD. stats.oecd.org. 26 November 2014. 10 July 2018. https://web.archive.org/web/20180710133733/https://stats.oecd.org/Index.aspx?DataSetCode=TRADEINDMACRO. live.
  3. Web site: Imports, exports and trade balance of goods on a balance-of-payments basis, by country or country grouping. 18 November 2014. Statistics Canada. 21 September 2017. 22 July 2016. https://web.archive.org/web/20160722130717/http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/gblec02a-eng.htm. live.
  4. Web site: Expand globally with Canada's free trade agreements . GAC . 2020-12-03 . 2023-05-14.
  5. Web site: Trade and investment agreements . International.gc.ca . 2015-10-25 . 2017-05-08 . https://web.archive.org/web/20170508173348/https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/index.aspx?lang=eng . live .
  6. Web site: CETA: A progressive trade agreement for a strong middle class. Global Affairs Canada. 21 September 2017. 22 September 2017. https://web.archive.org/web/20170922002811/http://www.international.gc.ca/gac-amc/campaign-campagne/ceta-aecg/index.aspx?lang=eng. live.
  7. Web site: Canadian Free Trade Agreement. Government of Canada Internal Trade Secretariat. 28 April 2023.
  8. Web site: CETA in effect today as Canada-EU trade pact comes into force. CBC News. 21 September 2017. 22 September 2017. https://web.archive.org/web/20170922075011/http://www.cbc.ca/news/business/ceta-europe-free-trade-1.4300071. live.
  9. Web site: Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) . 27 November 2015 . 2020-12-23 . 2020-12-26 . https://web.archive.org/web/20201226185830/https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/index.aspx?lang=eng . live .
  10. Goshko. Susannah. SusannahGoshko. 1750599509615231153. 25 January 2024. A statement from the UK Government on our decision to pause Free Trade Negotiations with Canada. 25 January 2024.
  11. News: 25 January 2024. UK Breaks Off Free Trade Talks With Canada on Lack of Progress. Bloomberg. 25 January 2024. subscription.
  12. News: Canada drops free trade talks with China: The Globe and Mail. Reuters. 2021-10-25. 2020-09-18. 2021-10-25. https://web.archive.org/web/20211025160645/https://www.reuters.com/article/us-china-canada-trade-idCAKBN2692QC. live.
  13. Web site: Credit Check: Canadians say U.S. deserves as much credit for Two Michaels' release as their own country. Angus Reid Institute. 2021-10-25. 2021-10-07. 2021-10-25. https://web.archive.org/web/20211025160658/https://angusreid.org/canada-china-huawei-meng-michaels-oct-2021/. live.
  14. News: Carbert. Michelle. Ottawa to ship tonnes of garbage back to Canada from Philippines by end of June. The Globe and Mail. 2021-10-25. 2019-05-22. 2021-10-25. https://web.archive.org/web/20211025160505/https://www.theglobeandmail.com/politics/article-ottawa-to-ship-tonnes-garbage-from-philippines-back-to-canada-by-end/. live.
  15. Web site: Canada. Global Affairs. Canada-Thailand Exploratory Free Trade Discussions. GAC. 2021-10-25. 2017-02-10. 2021-10-25. https://web.archive.org/web/20211025220712/https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/thailand-thailande/fta-ale/background-contexte.aspx?lang=eng. live.
  16. Web site: Canada. Global Affairs. Canada-Turkey Exploratory Free Trade Discussions. GAC. 2021-10-25. 2017-02-10. 2021-10-25. https://web.archive.org/web/20211025220714/https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/turkey-turquie/fta-ale/background-contexte.aspx?lang=eng. live.
  17. Web site: Additional background information . Canada-Guatemala, Nicaragua and El Salvador (Formerly Canada – Central American Four) Free Trade Agreement Negotiations . Global Affairs Canada . 25 November 2018 . 14 February 2017 . 24 July 2017 . https://web.archive.org/web/20170724082747/http://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ca4/fta-ale/info.aspx?lang=eng . live .
  18. Web site: Canada inks landmark bilateral investment agreement with Taiwan . Global News . 23 December 2023.