Canadian Free Trade Agreement | Accord de libre-échange canadien

Our Achievements

In December 2014, federal, provincial and territorial governments began negotiations to strengthen and modernize the Agreement on Internal Trade (AIT). They were guided by direction from premiers and the federal government to secure an ambitious, balanced and equitable agreement that would level the playing field for trade and investment in Canada.

Enhanced & modernized trade rules

The CFTA introduces advancements to Canada’s internal trade that enhance the flow of goods & services, investment & labour mobility, eliminates technical barriers to trade, greatly expands procurement coverage, and promotes regulatory cooperation within Canada.

Comprehensive free trade rules

The CFTA’s rules apply automatically to almost all areas of economic activity in Canada, with any exceptions being clearly identified which enhances innovation as new goods & services such as the sharing economy, clean technologies, are covered by rules designed to promote Canada’s long-term economic development.

Alignment with international obligations

The CFTA better aligns with Canada’s commitments under international trade agreements such as the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). This reduces compliance costs for Canadian firms who do business both at home and internationally.

Government procurement more open to Canadian business

All governments have made precedent-setting commitments to promote open procurement practices. These commitments help create a level playing field for companies operating across Canada, and boost value-for-money in government purchasing.

Resolving regulatory barriers

Governments agreed to establish a regulatory reconciliation process to address regulatory differences across jurisdictions that act as a barrier to trade. The CFTA also introduces a mechanism to promote regulatory cooperation, which equips governments to develop common regulatory approaches for emerging sectors.

Strengthened dispute settlement

The CFTA increases the maximum monetary penalties for governments that act in a manner that is inconsistent with the Agreement. Penalties vary based on population, the penalties for larger jurisdictions have doubled from a maximum of $5 million under the AIT to a maximum of $10 million under the new CFTA.

Protecting public policy objectives

The CFTA preserves the ability of governments to adopt and apply their own laws & regulations for economic activity in the public interest in order to achieve public policy objectives. Such objectives include the protection of public health, social services, safety, consumer protection, the promotion & protection of cultural diversity & workers’ rights.

Promoting strengthened domestic trade in the future

The CFTA creates several forward-looking processes and working groups to help strengthen Canada’s economic union into the future.

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Agreement Overview

Protocols of Amendment

Backgrounders

Interpretive Notes

Interpretive Note No. 1 – Interpretation of Annex 309 and Chapter Nine (September 18, 2020)

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Trade in Alcoholic Beverages

Federal, provincial, and territorial governments have agreed on an Action Plan to enhance interprovincial trade of alcoholic beverages, outlining commitments to improve consumer choice and greater transparency and access to markets for alcohol producers.

Regulatory Information

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Labour Mobility

Each year, thousands of Canadians move from one province or territory to another. “Labour Mobility” refers to the ability of certified workers to practice their regulated occupation, throughout Canada, wherever opportunities to work in that occupation exist. The Canadian Free Trade Agreement (CFTA) reaffirms the labour mobility provisions and obligations that were established under the 1995 Agreement on Internal Trade (AIT).

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Procurement

The purpose of Chapter Five of the Canadian Free Trade Agreement (CFTA) is to establish a transparent and efficient framework to ensure fair and open access to government procurement opportunities for all Canadian suppliers.

About Procurement

Dispute Resolution

An integral part of the Agreement is its dispute resolution process whereby Parties undertake to resolve disputes in a conciliatory, cooperative and harmonious manner. Accordingly, the Canadian Free Trade Agreement (CFTA) provides for progressive steps in its dispute avoidance and resolution processes under Chapter Ten.

Other Agreements

Agreement on Internal Trade

Trade Enhancement Agreements

Annual Reports

Each year the CFTA prepares an annual report on its work. This annual report includes an overview of achievements, stakeholder engagement, the work plans and upcoming work.

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NEW

Annual Report – April 1, 2022 to March 31, 2023

Overview of the Agreement The Canadian Free Trade Agreement (CFTA) entered into force on July 1, 2017. The CFTA’s objective…

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NEW

Annual Report – April 1, 2021 to March 31, 2022

Overview of the Agreement In December 2014, federal, provincial and territorial governments in Canada began negotiations to strengthen and modernize…