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ARTICLE · 27 APRIL 2017

The Canadian Free Trade Agreement

Osler, Hoskin & Harcourt LLP
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On April 7, 2017, federal, territorial and provincial governments jointly released the text of the Canadian Free Trade Agreement (CFTA), which establishes new free trade rules that will apply...

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Osler, Hoskin & Harcourt LLP
Osler, Hoskin & Harcourt LLP
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On April 7, 2017, federal, territorial and provincial governments jointly released the text of the Canadian Free Trade Agreement (CFTA), which establishes new free trade rules that will apply within Canada effective July 1, 2017.

The CFTA seeks to improve trade, investment, and worker mobility within Canada, by reducing, and in some cases eliminating, existing interprovincial barriers. Regrettably, comprehensive free trade within Canada continues to be elusive 150 years after Confederation. The CFTA provides for numerous exceptions within its 335 pages, thus achieving only a partial removal of obstacles to trade and investment.

CFTA will replace the Agreement on Internal Trade (AIT), which has been in place since 1995. Unlike AIT, CFTA adopts a "negative list" approach such that any remaining barriers have to be specifically expressed in the agreement by the governments. This approach is an improvement over the AIT's "positive list" approach, and will significantly

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