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Canada’s Free Trade Agreements: getting the most out of global trade

Posted by Customs Consulting Department on May 19, 2021 8:45:00 AM

Canada partners with the international trade community through several types of trade and investment agreements.

  • Free trade agreements (FTA)
  • Foreign investment promotion and protection agreements (FIPA)
  • Plurilateral agreements, and 
  • World Trade Organization (WTO) agreements.

Learn more about the different types of trade agreements here.

Free Trade Agreements (FTAs)

Canadian free trade agreements (FTAs) reduce trade barriers and open markets to Canadians, creating more predictable and transparent conditions for operating within foreign countries.

Canada’s FTAs cover all trade between parties, and go beyond traditional trade issues to cover areas such as services, intellectual property and investment. 

Some countries use the term economic partnership agreement (EPA) instead of FTA. The two terms, EPA and FTA, are very similar.

Canada currently has 13 Free Trade Agreements with 65 countries.Freight_94436519_s

Find Canadian FTA certificates here.

Learn more about Certificates of Origin here

Canada-United States-Mexico Agreement (CUSMA/USMCA) 

Replacing the North American Free Trade Act (NAFTA), CUSMA/USMCA impacts Canada’s dairy and automobile industries as well as pharmaceuticals and e-commerce. Learn more about the agreement

Status: In force

Partner countries: United States, Mexico

Canada-European Union: Comprehensive Economic and Trade Agreement (CETA) 

Through CETA, more than 99% of non-agricultural imports are duty-free for all parties. In Canada, 92% of agricultural imports are duty-free, and in the EU, 93.8% of agricultural imports are duty-free.

Status: Provisionally applied, thus removing 98% of the preexisting tariffs between the two parties.

Partner countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden. Please note, United Kingdom, left the European Union December 31, 2020.

Canada-UK Trade Continuity Agreement

Preferential trade between Canada and the UK continued after Brexit through the interim Canada-UK Trade Continuity Agreement. Read more about the agreement here

Status: In force, but temporary as the countries work toward a new comprehensive trade agreement.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

CPTPP eliminates tariffs and reduces barriers for 98% of exports to CPTPP member countries.  

Status: In force among Australia, Canada, Japan, Mexico, New Zealand, Singapore, and Vietnam.

Partner countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam 

Canada-European Free Trade Association Free Trade Agreement (CEFTA)

The agreement eliminates almost all tariffs, with certain agricultural and fishery products being excluded from immediate tariff elimination.

Status: In force

Partner countries: Iceland, Norway, Switzerland, Liechtenstein

Canada-Ukraine Free Trade Agreement (CUFTA)

Eliminates custom duties on essentially all goods produced in one country and imported to the other.

Status: In force

Canada-Chile Free Trade Agreement

Eliminates tariffs on 75 percent of bilateral trade. Bilateral merchandise trade has nearly quadrupled since the agreement entered into force in 1997.

Status: In force

Canada-Colombia Free Trade Agreement

Major Canadian exports to Colombia include goods such as cereals, machinery, vegetables, paper, and vehicles. 

Staus: In force

Canada-Costa Rica Free Trade Agreement 

Eliminates 87% of all tariffs on agricultural products. Tariffs on many other industries like automotive goods and goods were also eliminated. 

Status: In force

Canada-Honduras Free Trade Agreement

Status: In force 

Canada-Panama Free Trade Agreement

The agreement eliminates Panamanian tariffs on goods from Canada. Canada removed 99% of its tariffs on goods from Panama. 

Status: In force

Canada-Peru Free Trade Agreement

Status: In force

Canada-Israel Free Trade Agreement (CIFTA)

Eliminates 80% tariffs on most manufactured and agricultural goods. CIFTA does not affect certain agriculture sectors like poultry, dairy, and eggs.

Status: In force

Canada-Jordan Free Trade Agreement

Status: In force

Canada-Korea Free Trade Agreement (CKFTA)

Less often known as Canada-South Korea Free Trade Agreement (CSKFTA), this agreement eliminates 97.8% of Canada’s tariff lines for goods imported from South Korea, and South Korea eliminates 98.2% of its tariff lines for goods imported from Canada.

Ready to take your business worldwide? Free Trade Agreements are a fantastic way to benefit from tariff reductions. Our Free Trade experts are well-versed in the FTAs with all of Canada’s partner countries—we can help reduce or eliminate duties payable on the goods you import. Contact us today!

Contact us today!

Free Trade Agreements. It's what we do.