Free trade agreements of Canada
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 North American Free Trade Agreement (NAFTA).[3] By the end of 2014, Canadas bilateral trade hit C$1 trillion for the first time.[4]
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Overview
Canada is a founding member of the World Trade Organization (WTO) since 1 January 1995.
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 C$20 trillion with a market encompassing 474 million people.[5][6]
Building on that success, Canada continues to negotiate and has concluded free-trade agreements with more than 40 countries, 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.[7] On 21 September 2017, CETA was provisionally applied, immediately eliminating 98% of EU's tariff lines on Canadian goods.[8] 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
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Under negotiation
Canada is negotiating bilateral FTAs with the following countries and trade blocs:[7]
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:[7]
Abandoned free-trade agreement proposals
| Agreement name | Abbreviation | Countries involved | Notes |
|---|---|---|---|
| Free Trade Area of the Americas | FTAA | 32
|
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. |
| Canada–Central American Four Free Trade Agreement | 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.[13] | |
| Trans-Pacific Partnership | 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.[7]
- Canada–Argentina (29 April 1993)
- Canada–Armenia (29 March 1999)
- Canada–Barbados (17 January 1997)
- Canada–Benin (18 January 2013)
- Canada–Burkina Faso (11 October 2017)
- Canada–Cameroon (16 December 2016)
- Canada–China (1 October 2014)
- Canada–Costa Rica (29 September 1999)
- Canada–Côte d'Ivoire (14 December 2015)
- Canada–Croatia (30 January 2001)
- Canada–Czech Republic (22 January 2012)
- Canada–Ecuador (6 June 1997)
- Canada–Egypt (3 November 1997)
- Canada–Guinea (27 March 2017)
- Canada–Hong Kong (6 September 2016)
- Canada–Hungary (21 November 1993)
- Canada–Jordan (14 December 2009)
- Canada–Kosovo (19 December 2018)
- Canada–Kuwait (19 February 2014)
- Canada–Latvia (24 November 2011)
- Canada–Lebanon (19 June 1999)
- Canada–Mali (8 June 2016)
- Canada–Mongolia (24 February 2017)
- Canada–Panama (13 February 1998)
- Canada–Peru (20 June 2007)
- Canada–Philippines (13 November 1996)
- Canada–Poland (22 November 1990)
- Canada–Romania (23 November 2011)
- Canada–Russian Federation (27 June 1991)
- Canada–Senegal (5 August 2016)
- Canada–Serbia (27 April 2015)
- Canada–Slovak Republic (14 March 2012)
- Canada–Tanzania (9 December 2013)
- Canada–Thailand (24 September 2008)
- Canada–Trinidad & Tobago (8 June 1996)
- Canada–Ukraine (24 June 1995)
- Canada–Uruguay (2 June 1999)
- Canada–Venezuela (28 January 1998)
FIPAs signed
The following is a list of FIPAs that have been concluded and signed, but have not yet entered into force.[7]
- Canada–Moldova (June 2018)
- Canada–Nigeria (May 2014)
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.[7]
- Canada–Albania (November 2013)
- Canada–Bahrain (February 2010)
- Canada–Madagascar (August 2008)
- Canada–United Arab Emirates (May 2018)
- Canada–Zambia (March 2013)
Ongoing FIPA negotiations
The following is a list of FIPA negotiations that have not yet concluded.[7]
- Canada–Democratic Republic of Congo
- Canada–Gabon
- Canada–Georgia
- Canada–Ghana
- Canada–India
- Canada–Kazakhstan
- Canada–Kenya
- Canada–Republic of Macedonia
- Canada–Mauritania
- Canada–Mozambique
- Canada–Pakistan
- Canada–Qatar
- Canada–Rwanda
- Canada–Tunisia
Notes
- Superseded the Canada–United States Free Trade Agreement.
- 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
- After 2020 December 31, when the UK's transition period with the EU ends, trade between Canada and the UK will no longer benefit from any preferences offered by CETA.
- To be determined, as of 2020 December 20
References
- Hart, M. (2003). A Trading Nation: Canadian Trade Policy from Colonialism to Globalization. University of British Columbia Press. ISBN 9780774808958. Retrieved 26 November 2014.
- OECD. "OECD Statistics". stats.oecd.org. Retrieved 26 November 2014.
- 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
- "Imports, exports and trade balance of goods on a balance-of-payments basis, by country or country grouping". Statistics Canada. Retrieved 21 September 2017.
- North American Free Trade Agreement (NAFTA), Foreign Affairs, Trade and Development Canada, 20 November 2015, retrieved 28 November 2015
- Proximity to Market, Invest in Ontario, Government of Ontario, 2010, retrieved 2 May 2014
- "Trade and investment agreements". International.gc.ca. Retrieved 2015-10-25.
- "CETA: A progressive trade agreement for a strong middle class". Global Affairs Canada. Retrieved 21 September 2017.
- "CETA in effect today as Canada-EU trade pact comes into force". CBC News. Retrieved 21 September 2017.
- https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/index.aspx?lang=eng
- "Canada-UK Trade Continuity Agreement (Canada-UK TCA)." Government of Canada. 2020 December 23.
- Sosnow, Clifford, Peter Kirby, Faye Voight, and Novera Khan. 2020 December 23. "European Union: A Work In Progress: Updates Regarding The Canada-United Kingdom Trade Continuity Agreement." Mondaq. Ottawa: Fasken.
- "Additional background information". Canada-Guatemala, Nicaragua and El Salvador (Formerly Canada – Central American Four) Free Trade Agreement Negotiations. Global Affairs Canada. 14 February 2017. Retrieved 25 November 2018.