The Canadian Free Trade Agreement (CFTA) is a comprehensive trade agreement that was signed by the Canadian federal, provincial, and territorial governments on April 7, 2017. It replaced the previous Agreement on Internal Trade (AIT), which had been in place since 1995. The CFTA is designed to promote trade within Canada and reduce barriers to trade between provinces and territories.
Under the CFTA, Canadian businesses and consumers enjoy a number of benefits. For example, the agreement eliminates tariffs and quotas on most goods traded between provinces and territories. It also includes provisions to reduce barriers to trade in areas such as labour mobility, government procurement, and regulatory cooperation. This means that businesses can more easily trade with customers and suppliers in other provinces and territories, and consumers have access to a wider range of products and services.
In addition to promoting trade within Canada, the CFTA also helps to position Canada as a leader in international trade. By streamlining trade between provinces and territories, the agreement helps Canadian businesses become more competitive and innovative. This, in turn, allows them to expand their operations and compete on a global scale.
To ensure that the CFTA is effective, the federal, provincial, and territorial governments have established a number of institutions to oversee the agreement. These include a Committee on Internal Trade, which is responsible for reviewing and resolving disputes between provinces and territories. There is also a Regulatory Reconciliation and Cooperation Table, which is tasked with identifying and addressing regulatory barriers to trade.
In conclusion, the Canadian Free Trade Agreement is an important tool for promoting trade within Canada and reducing barriers to trade between provinces and territories. Its provisions benefit Canadian businesses and consumers by increasing competition and innovation, while also positioning Canada as a leader in international trade. As the world becomes increasingly interconnected, the CFTA will continue to play an important role in maintaining Canada`s economic competitiveness.