Canada-United States Free Trade Agreement (FTA)
Canada-US FTA Fast Facts
Negotiations toward a free trade agreement with the U.S. began in 1986. The two nations came together and agreed to the Canada-U.S. Free Trade Agreement (FTA) in 1987. This historic agreement placed Canada and the United States at the forefront of trade liberalization.
Key elements of the agreement included the elimination of tariffs, and the reduction of many non-tariff barriers, and it was among the first trade agreements to address trade in services. It also included a dispute settlement mechanism for the fair and expeditious resolution of trade disagreements. Of particular importance to Canada was the fact that the FTA established a ground-breaking system for the binational review of trade remedy determinations, providing an alternative to domestic judicial review. In practical terms, Canada and the U.S. agreed to remove bilateral border measures on traded goods, which included the removal of tariffs on goods such as meat products, live animals, wine, clothing and textiles, as well as most agricultural products.
Chronology of events:
- September 26, 1985: Canada proposes an FTA with the U.S.
- October 4, 1987: Substantive negotiations conclude and agreement is reached on the Canada-U.S. Free Trade Agreement
- January 2 1988: Free Trade Agreement is signed by leaders from Canada and the U.S.
- January 1, 1989: Canada-U.S. Free Trade Agreement enters into force
North American Free Trade Agreement (NAFTA):
Shortly after the implementation of the Canada-U.S. Free Trade Agreement, Canada, the U.S. and Mexico negotiated the North America Free Trade Agreement, creating the largest free trade area in the world. NAFTA established a strong foundation for growth and has proven a valuable example of the benefits of trade liberalization for all three countries.
Chronology of events:
- June 10, 1990: The U.S. and Mexico agree to pursue an FTA
- February 5, 1991: NAFTA negotiations begin
- December 17, 1992: NAFTA is signed by Leaders from Canada, the U.S. and Mexico
- February 25, 1993: Bill C-115 to implement NAFTA is introduced in House of Commons
- June 23, 1993: NAFTA is adopted by Parliament and receives Royal Assent
- August 1993: Additional side agreements on labour and the environment are negotiated
- January 1, 1994: NAFTA enters into force
