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Canadian Free Trade Agreement Consolidated Version

Global Free Trade Rules Unlike the AIT, the CFTA rules automatically apply to almost all areas of economic activity in Canada, with exceptions clearly identified. This change fosters innovation because new goods and services such as the sharing economy or clean technologies are covered by rules designed to support Canada`s long-term economic development. On January 15, 2020, the Internal Trade Secretariat issued a news release in which the federal, provincial and territorial governments committed to reviewing their own party-specific exceptions and signed the first Protocol of Amendment (the Protocol) on December 10, 2019. The Protocol only allows the parties to unilaterally lift trade exclusions. Amendments, including the narrowing of exceptions, have legal effect only if all parties have not objected. Please read our previous newsletter, Because We Said So: Removing the CITT from the Review of Canada`s `National Security Exception. and whereas removing or eliminating barriers to the free movement of persons, goods, services and investment is essential to promote an open, efficient and stable internal market in order to improve the competitiveness of Canadian businesses and promote sustainable and environmentally friendly development; The new trade agreement thresholds for 2020 are: Promoting Stronger Internal Trade in the Future The CFTA is creating several forward-looking processes and working groups to strengthen Canada`s economic union in the future. For example: (3) Alberta retains the ability to raise legal and commercial challenges against other parties who violate the Constitution or the CFTA. Alberta and Manitoba have also removed exemptions for existing measures or exemptions for future measures. Although they are not applicable to procurement, they are trade-related measures. According to the Bank of Canada, the removal of interprovincial trade barriers could affect Canada`s production potential by up to two-tenths of a percentage point each year.

The governments of Alberta and Manitoba announced in 2019 that they will lift all remaining supply exemptions under the Canadian Free Trade Agreement (CFTA). This is a continuation of Alberta`s lifting of trade exemptions (as in Alberta, the CFTA exemptions to increase competition) and the removal of Manitoba`s only purchase exemption (preference for Manitoba businesses for representational purchases). Alignment with International Commitments The CFTA is more in line with Canada`s commitments under international trade agreements such as the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

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