Understanding which agreements apply to your imports can help you identify potential duty savings and meet your customs obligations.
Free trade agreements can help Canadian importers reduce customs duties on qualifying goods from Canada’s trading partners.
However, importing from a country with which Canada has an agreement does not automatically qualify your goods for preferential tariff treatment.
In this article, we explain how free trade agreements work and what you need to know before claiming their benefits.
Free trade agreements (FTAs) are arrangements between countries that set trade rules and reduce or eliminate certain trade barriers, including customs duties.
For Canadian importers, a main benefit is access to preferential tariff rates, which may be lower than the standard duties otherwise payable.
However, not all products receive duty-free treatment. The applicable rate depends on the agreement, the product’s tariff classification, and whether the goods meet its requirements.
Canada has several free trade agreements covering countries across North America, Europe, Asia, and other regions.
Major agreements include:
Canada also has bilateral agreements with countries including Chile, Colombia, Peru, and Ukraine.
Moreover, the Canada–Indonesia Comprehensive Economic Partnership Agreement (CEPA) is scheduled to enter into force on December 1, 2026.
Canada’s Customs Tariff establishes duty rates according to a product’s tariff classification and applicable tariff treatment.
Goods from most countries receive the Most Favoured Nation (MFN) rate unless they qualify for a preferential rate. Under an FTA, eligible goods may qualify for reduced or eliminated customs duties.
However, preferential treatment does not necessarily eliminate GST/HST, surtaxes, or applicable anti-dumping and countervailing duties.
Goods must satisfy the applicable agreement’s rules of origin to qualify for preferential treatment.
These rules determine whether goods have undergone sufficient production or processing within participating countries.
Depending on the agreement, eligibility may depend on where the goods were produced, the origin of their materials, changes in tariff classification, or regional value content.
You must also satisfy applicable direct shipment or transshipment rules, which generally restrict processing in countries outside the agreement.
If you did not claim preferential tariff treatment when your goods entered Canada, you may be eligible to request a refund of excess customs duties.
Under CUSMA and Canada’s other FTAs, eligible importers generally have four years from the date the goods were accounted for to submit a claim.
You must meet the applicable agreement’s origin requirements and provide valid proof of origin, such as a certificate, certification, or declaration, as required under that agreement.
Cole International provides trade consulting and customs brokerage services to help Canadian importers navigate free trade agreements and preferential tariff requirements.
Connect with one of our trade professionals to discuss which agreements may apply to your goods and how to claim the available benefits.