Canadian Government Removes Exceptions To Canada Free Trade Agreement

On June 30, Canadian Minister of Transport and Internal Trade Chrystia Freeland announced the federal government will begin removing all remaining federal exceptions to the Canadian Free Trade Agreement (CFTA).

The CFTA, which came into force on July 1, 2017, was designed to reduce and eliminate barriers to the free movement of persons, goods, services, and investments within Canada and to establish an open efficient, and stable domestic market. CFTA exceptions are provisions of the agreement that allow federal, provincial, or territorial governments to opt out of obligations under the agreement. (For example, exemptions could exclude an industry, sector, or legislation.)

Among the exceptions the government is removing are those related to financial entities, commercial land development, transportation services, and space projects.

“Removal of all federal exceptions in the Canadian Free Trade Agreement is one of the many recent measures we are taking … to eliminate internal trade barriers and cut red tape for Canadian businesses,” Freeland said. “We are moving quickly on commitments to improve labor mobility for workers across the country, implement mutual recognition agreements to get goods and services moving, and removing duplication of requirements which for too long have created extra costs and delays for Canadian businesses and workers.”