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ARTICLE · 31 MARCH 2017

Canada's Response To NAFTA Renegotiations

Osler, Hoskin & Harcourt LLP
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When NAFTA came into effect on January 1, 1994, it marked the formation of the world's largest free trade area at that time.

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Osler, Hoskin & Harcourt LLP
Osler, Hoskin & Harcourt LLP
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The recent announcement of the U.S. Trade Policy Agenda and President Donald Trump's remarks about renegotiating NAFTA have left the Canadian government concerned about the chilling effect  this could have on inbound investment into Canada.

When NAFTA came into effect on January 1, 1994, it marked the formation of the world's largest free trade area at that time. In 2015, Global Affairs Canada reported that total trilateral merchandise trade amounted to over US$1.0 trillion — more than a threefold increase since 1993. NAFTA partners represented 28% of the world's GDP (with a combined GDP of US$20.7 trillion in 2015) even though the NAFTA region contains less than 7% of the world's population. By guaranteeing fair and non-discriminatory treatment of investors within the free trade area and creating a regional market with reduced trade barriers and efficient supply chains, NAFTA has provided certainty and stability for investors in Canada and the U.S. For example,

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