October 4th marks an important date in Canada-U.S. trade relations. Twenty years ago, in 1987, both countries agreed to the Canada-United States Free Trade Agreement. Negotiations toward a free trade agreement with the U.S. began in 1985. Sixteen months later, the two nations agreed to a historic agreement that placed Canada {and the United States} at the forefront of trade liberalization.
Key elements of the agreement included the elimination of tariffs, 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 disputes.