Free trade agreements of Canada

Last updated
.mw-parser-output .legend{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .legend-color{display:inline-block;min-width:1.25em;height:1.25em;line-height:1.25;margin:1px 0;text-align:center;border:1px solid black;background-color:transparent;color:black}.mw-parser-output .legend-text{}
Canada
Countries and territories with free trade agreements FTAs with Canada.svg
  Canada
  Countries and territories with free trade agreements

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). [3] By the end of 2014, Canada's bilateral trade hit Can$1 trillion for the first time. [4] Canada is a signatory to 15 free trade agreements with 51 countries. [5]

Contents

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. [6] [7]

Building on that success, Canada continues to negotiate and has concluded free trade agreements with 51 countries, [5] 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. [8] On 21 September 2017, CETA was provisionally applied, immediately eliminating 98% of EU's tariff lines on Canadian goods. [9] 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 [8]
Agreement nameAbbreviationCountries/blocs involvedSignedEntered into force
Canada–United States Free Trade Agreement CUSFTAFlag of the United States.svg  United States 12 October 19871 January 1989 [lower-alpha 1]
North American Free Trade Agreement NAFTAFlag of Mexico.svg  Mexico
Flag of the United States.svg  United States
17 December 19921 January 1994 [lower-alpha 2]
Canada–Israel Free Trade Agreement CIFTAFlag of Israel.svg  Israel 31 July 19961 July 1997
Canada–Chile Free Trade Agreement CCFTAFlag of Chile.svg  Chile 5 December 19965 July 1997
Canada–Costa Rica Free Trade Agreement CCRFTAFlag of Costa Rica.svg  Costa Rica 23 April 20011 November 2002
Canada–European Free Trade Association Free Trade Agreement CEFTAEFTA logo2.svg  European Free Trade Association 26 January 20081 July 2009
Canada–Peru Free Trade Agreement CPFTAFlag of Peru.svg  Peru 29 May 20081 August 2009
Canada–Colombia Free Trade Agreement CCoFTAFlag of Colombia.svg  Colombia 21 November 200815 August 2011 [lower-alpha 3]
Canada–Jordan Free Trade Agreement CJFTAFlag of Jordan.svg  Jordan 28 June 20091 October 2012
Canada–Panama Free Trade Agreement CPAFTAFlag of Panama.svg  Panama 14 May 20101 April 2013
Canada–Honduras Free Trade Agreement CHFTAFlag of Honduras.svg  Honduras 5 November 20131 October 2014
Canada–Korea Free Trade Agreement CKFTAFlag of South Korea.svg  South Korea 11 March 20141 January 2015
Canada–Ukraine Free Trade Agreement CUFTAFlag of Ukraine.svg  Ukraine 11 July 20161 August 2017
Canadian Free Trade Agreement (interprovincial trade agreement)CFTAFlag of Canada (Pantone).svg  Canada July 1 2017July 1 2017 [10]
Comprehensive Economic and Trade Agreement CETAFlag of Europe.svg  European Union 30 October 201621 September 2017 [11]
Comprehensive and Progressive Agreement for Trans-Pacific Partnership [12] CPTPP,
TPP-11
8 March 201830 December 2018
Canada–United States–Mexico Agreement [lower-alpha 4] CUSMAFlag of Mexico.svg  Mexico
Flag of the United States.svg  United States
30 November 20181 July 2020
Canada–UK Trade Continuity Agreement Canada–UK TCAFlag of the United Kingdom.svg  United Kingdom [lower-alpha 5] 9 December 20201 April 2021


Under Active Negotiation

Canada is negotiating bilateral FTAs with the following countries and trade blocs: [8]

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: [8]

Abandoned free trade agreement proposals

Agreement nameAbbreviationCountries involvedNotes
Free Trade Area of the Americas FTAAProposed 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.
Canada–Central American Four Free Trade Agreement CCA4FTATwelve 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. [22]
Trans-Pacific Partnership TPPAgreement 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. [8]

FIPAs signed

The following is a list of FIPAs that have been concluded and signed, but have not yet entered into force. [8]

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. [8]

Ongoing FIPA negotiations

The following is a list of FIPA negotiations that have not yet concluded. [8]

See also

Notes

  1. Replaced by the North American Free Trade Agreement.
  2. Replaced by the Canada–United States–Mexico Agreement.
  3. Canada's ratification of this FTA was dependent upon Colombia's ratification of the "Agreement Concerning Annual Reports on Human Rights and Free Trade Between Canada and the Republic of Colombia" signed on 27 May 2010
  4. The agreement is also referred to as the United States–Mexico–Canada Agreement and abbreviated as the USMCA.
  5. Trade between Canada and the United Kingdom had formerly benefited from the Canada–EU Comprehensive Economic and Trade Agreement (CETA), although CETA ceased to apply to Canada–UK trade after the UK withdrew from the EU in 2021. The Trade Continuity Agreement largely replicates the provisions of CETA until a more comprehensive trade agreement is agreed upon. [13] [14]

Related Research Articles

<span class="mw-page-title-main">North American Free Trade Agreement</span> Agreement signed by Canada, Mexico, and the United States

The North American Free Trade Agreement was an agreement signed by Canada, Mexico, and the United States that created a trilateral trade bloc in North America. The agreement came into force on January 1, 1994, and superseded the 1988 Canada–United States Free Trade Agreement between the United States and Canada. The NAFTA trade bloc formed one of the largest trade blocs in the world by gross domestic product.

<span class="mw-page-title-main">Free Trade Area of the Americas</span> Failed 2005 trade agreement for North and South America

The Free Trade Area of the Americas was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas, excluding Cuba. Negotiations to establish the FTAA ended in failure, however, with all parties unable to reach an agreement by the 2005 deadline they had set for themselves.

A European Union Association Agreement or simply Association Agreement (AA) is a treaty between the European Union (EU), its Member States and a non-EU country that creates a framework for co-operation between them. Areas frequently covered by such agreements include the development of political, trade, social, cultural and security links.

<span class="mw-page-title-main">Jim Carr</span> Canadian politician (1951–2022)

James Gordon Carr was a Canadian politician, cabinet minister, journalist, and professional oboist. A member of the Liberal Party, he served as the member of Parliament for Winnipeg South Centre from 2015 until his death on December 12, 2022. Carr died days after his Private Members Bill, Bill C-235, An Act respecting the building of a green economy in the Prairies, passed the House and went to the Senate. He last served as the Chair of the Standing Committee on Public Safety and National Security, until his resignation on September 29, 2022.

<span class="mw-page-title-main">Canada–European Union relations</span> Bilateral relations

Relations between Canada and the European Union (EU) and its forerunners date back to the 1950s. While the relationship is primarily an economic one, there are also matters of political cooperation. Canadians also use English and French — both European languages — as official and majority languages.

<span class="mw-page-title-main">Free trade agreements of New Zealand</span>

New Zealand is party to several free trade agreements (FTAs) worldwide.

<span class="mw-page-title-main">Canada–Panama Free Trade Agreement</span>

The Canada–Panama Free Trade Agreement is a free trade agreement between Canada and Panama that went into effect April 1, 2013. It was concluded on August 11, 2009, by Canadian Prime Minister Stephen Harper and Panamanian President Ricardo Martinelli and signed by the two countries' trade ministers on May 14, 2010. It was effective by December 2012, after both countries' parliamentary approval. The agreement eliminates Panamanian tariffs on 90% of goods from Canada. The remaining 10% will be phased out within the next ten years. Canada will remove 99% of its tariffs on goods from Panama, while keeping those on some imports of sugar, poultry, eggs and dairy products. Panama will end its ban on beef from Canada which was initiated after cases of mad cow disease were found in Canada in 2003.

The Comprehensive Economic Partnership for East Asia (CEPEA) is a Japanese led proposal for trade co-operation, free trade agreement, among the 16 present member countries of the East Asia Summit. All those movements and efforts were taken over by the following Regional Comprehensive Economic Partnership.

<span class="mw-page-title-main">Comprehensive Economic and Trade Agreement</span> Canada–EU free trade agreement

The Comprehensive Economic and Trade Agreement is a free-trade agreement between Canada and the European Union and its member states. It has been provisionally applied, thus removing 98% of the preexisting tariffs between the two parts.

The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and the Republic of India. The initial framework agreement was signed on 8 October 2003 in Bali, Indonesia. and the final agreement was on 13 August 2009. The free trade area came into effect on 1 January 2010. India hosted the latest ASEAN-India Commemorative Summit in New Delhi on 26 January 2018. In the financial year 2017–18, Indo-ASEAN bilateral trade grew by almost 14% to reach US$81.3 billion. India's imports from ASEAN were valued at US$47.13 billion while its exports to ASEAN stood at US$34.2 billion.

<span class="mw-page-title-main">Commercial policy</span> Governments policy governing international trade

A commercial policy is a government's policy governing international trade. Commercial policy is an all encompassing term that is used to cover topics which involve international trade. Trade policy is often described in terms of a scale between the extremes of free trade on one side and protectionism on the other. A common commercial policy can sometimes be agreed by treaty within a customs union, as with the European Union's common commercial policy and in Mercosur. A nation's commercial policy will include and take into account the policies adopted by that nation's government while negotiating international trade. There are several factors that can affect a nation's commercial policy, all of which can affect international trade policies.

<span class="mw-page-title-main">Free trade agreements of the European Union</span> Overview of free trade agreements in the European Union


The European Union has concluded free trade agreements (FTAs) and other agreements with a trade component with many countries worldwide and is negotiating with many others. The European Union negotiates free trade deals on behalf of all of its member states, as the member states have granted the EU has an "exclusive competence" to conclude trade agreements. Even so, member states' governments control every step of the process :

<span class="mw-page-title-main">Chile–United States Free Trade Agreement</span> Free trade agreement

The United States-Chile Free Trade Agreement is a free trade agreement (FTA) between the United States and Chile signed on June 6, 2003. The pact came into force on January 1, 2004. On that date, tariffs on 90% of U.S. exports to Chile and 95% of Chilean exports to the United States were eliminated. The agreement also established that Chile and the U.S. will establish duty-free trade in all products within a maximum of 12 years (2016). In 2009, bilateral trade between the United States and Chile reached US$15.4 billion, a 141% increase over bilateral trade levels before the U.S.-Chile FTA took effect. In particular, U.S. exports to Chile in 2009 showed a 248% increase over pre-FTA levels.

<span class="mw-page-title-main">Regional Comprehensive Economic Partnership</span> 2020 Asia-Pacific free trade agreement

The Regional Comprehensive Economic Partnership is a free trade agreement among the Asia-Pacific countries of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The 15 member countries account for about 30% of the world's population and 30% of global GDP, making it the largest trade bloc in history. Signed in November 2020, RCEP is the first free trade agreement among the largest economies in Asia, including China, Indonesia, Japan, and South Korea.

<span class="mw-page-title-main">Comprehensive and Progressive Agreement for Trans-Pacific Partnership</span> Multilateral free trade agreement

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), initially abbreviated as TPP11 or TPP-11, is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It evolved from the Trans-Pacific Partnership (TPP), which was never ratified due to the withdrawal of the United States. The eleven members have combined economies representing 13.4 percent of global gross domestic product, at approximately US$13.5 trillion, making the CPTPP one of the world's largest free trade areas by GDP, along with the United States–Mexico–Canada Agreement, the European single market, and the Regional Comprehensive Economic Partnership. The United Kingdom and the present members formally signed an accession protocol on 16 July 2023, and will join the agreement when it has been ratified by all parties, or after 15 months if the UK and a majority of CPTPP parties have ratified it.

<span class="mw-page-title-main">United States–Mexico–Canada Agreement</span> Free trade agreement

The Agreement between the United States of America, Mexico, and Canada (USMCA) is a free trade agreement between the United States, Mexico, and Canada. It replaced the North American Free Trade Agreement (NAFTA) implemented in 1994, and is sometimes characterized as "NAFTA 2.0", or "New NAFTA", since it largely maintains or updates the provisions of its predecessor. USMCA is one of the world's largest free trade zones, with a population of more than 510 million people and an economy of $30.997 trillion in nominal GDP — nearly 30 percent of the global economy.

South Korea has concluded free trade agreements (FTAs) and other agreements with a trade component with countries around the world and is negotiating with others.

Vietnam, although a relatively young and small nation, has successfully established trade relations with dozens of countries worldwide. This is especially evident in the number of free trade agreements (FTAs) that the country has signed and is participating in. Being part of the Association of Southeast Asian Nations (ASEAN), economic opportunities for Vietnam expands beyond bilateral trade agreements, with specific countries in order to include multilateral trade agreements via the ASEAN Free Trade Area (AFTA).

References

  1. Hart, M. (2003). A Trading Nation: Canadian Trade Policy from Colonialism to Globalization. University of British Columbia Press. ISBN   9780774808958. Archived from the original on 17 August 2021. Retrieved 26 November 2014.
  2. OECD. "OECD Statistics". stats.oecd.org. Archived from the original on 10 July 2018. Retrieved 26 November 2014.
  3. Coyne, Andrew (March 16, 2012), Andrew Coyne: Canada at the crossroad of trade, archived from the original on 24 March 2012, retrieved 2 May 2014
  4. "Imports, exports and trade balance of goods on a balance-of-payments basis, by country or country grouping". Statistics Canada. 18 November 2014. Archived from the original on 22 July 2016. Retrieved 21 September 2017.
  5. 1 2 "Expand globally with Canada's free trade agreements". GAC. 2020-12-03. Retrieved 2023-05-14.
  6. North American Free Trade Agreement (NAFTA), Foreign Affairs, Trade and Development Canada, 20 November 2015, archived from the original on 8 December 2015, retrieved 28 November 2015
  7. Proximity to Market, Invest in Ontario, Government of Ontario, 2010, archived from the original on 2 May 2014, retrieved 2 May 2014
  8. 1 2 3 4 5 6 7 8 "Trade and investment agreements". International.gc.ca. Archived from the original on 2017-05-08. Retrieved 2015-10-25.
  9. "CETA: A progressive trade agreement for a strong middle class". Global Affairs Canada. Archived from the original on 22 September 2017. Retrieved 21 September 2017.
  10. "Canadian Free Trade Agreement". Government of Canada Internal Trade Secretariat. Retrieved 28 April 2023.
  11. "CETA in effect today as Canada-EU trade pact comes into force". CBC News. Archived from the original on 22 September 2017. Retrieved 21 September 2017.
  12. "Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)". 27 November 2015. Archived from the original on 2020-12-26. Retrieved 2020-12-23.
  13. "Canada-UK Trade Continuity Agreement (Canada-UK TCA) – Economic Impact Assessment". www.international.gc.ca. Government of Canada. 8 December 2020. Archived from the original on 26 April 2021. Retrieved 17 February 2021.
  14. McGregor, Janye (9 December 2020). "Canada-U.K. trade deal signed — but implementing bill unlikely to meet deadline". www.cbc.ca. Canadian Broadcasting Corporation. Archived from the original on 30 May 2021. Retrieved 17 February 2021.
  15. Goshko, Susannah [@SusannahGoshko] (25 January 2024). "A statement from the UK Government on our decision to pause Free Trade Negotiations with Canada" (Tweet). Retrieved 25 January 2024 via Twitter.
  16. "UK Breaks Off Free Trade Talks With Canada on Lack of Progress" . Bloomberg. 25 January 2024. Retrieved 25 January 2024.
  17. "Canada drops free trade talks with China: The Globe and Mail". Reuters. 2020-09-18. Archived from the original on 2021-10-25. Retrieved 2021-10-25.
  18. "Credit Check: Canadians say U.S. deserves as much credit for Two Michaels' release as their own country". Angus Reid Institute. 2021-10-07. Archived from the original on 2021-10-25. Retrieved 2021-10-25.
  19. Carbert, Michelle (2019-05-22). "Ottawa to ship tonnes of garbage back to Canada from Philippines by end of June". The Globe and Mail. Archived from the original on 2021-10-25. Retrieved 2021-10-25.
  20. Canada, Global Affairs (2017-02-10). "Canada-Thailand Exploratory Free Trade Discussions". GAC. Archived from the original on 2021-10-25. Retrieved 2021-10-25.
  21. Canada, Global Affairs (2017-02-10). "Canada-Turkey Exploratory Free Trade Discussions". GAC. Archived from the original on 2021-10-25. Retrieved 2021-10-25.
  22. "Additional background information". Canada-Guatemala, Nicaragua and El Salvador (Formerly Canada – Central American Four) Free Trade Agreement Negotiations. Global Affairs Canada. 14 February 2017. Archived from the original on 24 July 2017. Retrieved 25 November 2018.
  23. "Canada inks landmark bilateral investment agreement with Taiwan". Global News. Retrieved 23 December 2023.