Free trade agreements of Canada

United States Mexico Peru
  Countries and territories with free-trade agreements

Canada is regularly described as a trading nation as its total trade is worth more than two-thirds of its GDP (the second highest level in the G7 after Germany).[1][2] Of that total trade, roughly 75% is done with countries which are part of free-trade agreements with Canada, primarily the United States through the North American Free Trade Agreement (NAFTA).[3] By the end of 2014, Canada bilateral trade hit C$1 trillion for the first time.[4]

The North American Free Trade Agreement between Canada, the United States, and Mexico came into force on January 1, 1994, creating the largest free-trade region in the world by GDP. By 2014, the combined GDP for the NAFTA area was estimated to be over C$20 trillion with a market encompassing 474 million people.[5][6] Building on that success, Canada continues to negotiate and has concluded free-trade agreements with more than 40 countries, most recently with South Korea, which represents Canada's first FTA with a partner in the Asia-Pacific region. As of 2018, Canada has also concluded two other significant multilateral trade agreements: the Comprehensive Economic and Trade Agreement (CETA) with the European Union and the eleven-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with ten other Pacific Rim countries.[7] On 21 September 2017, CETA was provisionally applied, immediately eliminating 98 per cent of EU's tariff lines on Canadian goods.[8] Canada is currently the only G7 country to have free trade agreements in force with all other G7 countries. Free trade with the final G7 country, Japan, commenced when the CPTPP entered into force on 30 December 2018.

World Trade Organization

Canada is a founding member of the World Trade Organization (WTO) since January 1, 1995.

Free-trade agreements

Agrements in force or provisionally in force

The following is a list of countries and trading blocs that Canada has current FTAs with.[7]

Agreement name Abbreviation Countries/blocs involved Signed Entered into force
Canada–United States Free Trade Agreement CUSFTA  United States 12 October 1987 1 January 1989
North American Free Trade Agreement NAFTA  Mexico
 United States
17 December 1992 1 January 1994[a]
Canada–Israel Free Trade Agreement CIFTA  Israel 31 July 1996 1 January 1997
Canada–Chile Free Trade Agreement CCFTA  Chile 5 December 1996 5 July 1997
Canada–Costa Rica Free Trade Agreement CCRFTA  Costa Rica 23 April 2001 1 November 2002
Canada–European Free Trade Association Free Trade Agreement CEFTA 26 January 2008 1 July 2009
Canada–Peru Free Trade Agreement CPFTA  Peru 29 May 2008 1 August 2009
Canada–Colombia Free Trade Agreement  Colombia 21 November 2008 15 August 2011[b]
Canada–Jordan Free Trade Agreement  Jordan 28 June 2009 1 October 2012
Canada–Panama Free Trade Agreement  Panama 14 May 2010 1 April 2013
Canada–Honduras Free Trade Agreement  Honduras 5 November 2013 1 October 2014
Canada–Korea Free Trade Agreement CKFTA  South Korea 11 March 2014 1 January 2015
Canada–Ukraine Free Trade Agreement CUFTA  Ukraine 11 July 2016 1 August 2017
Comprehensive Economic and Trade Agreement CETA  European Union 30 October 2016 21 September 2017 (provisional)[9]
Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP,
8 March 2018 30 December 2018
Canada–United States–Mexico Agreement CUSMA,

 United States

30 November 2018 1 July 2020

Free-trade agreements under negotiation

Canada is negotiating bilateral FTAs with the following countries and trade blocs:[7]

Exploratory discussions

Canada is undertaking exploratory discussions of bilateral or multilateral FTAs with the following countries and trade blocs, although formal negotiations have not yet begun:[7]

Abandoned free-trade agreement proposals

Agreement name Abbreviation Countries involved Notes
Free Trade Area of the Americas FTAA Proposed expansion of the North American Free Trade Agreement to all members of the Organization of American States, negotiated from 1994 to 2005. During the 4th Summit of the Americas in 2005, 26 of the countries pledged to meet again in 2006 to resume negotiations but no such meeting took place.
Canada–Central American Four Free Trade Agreement CCA4FTA Twelve rounds of negotiations from 2001 to 2010. When no agreement was reached during the 2010 round, Canada and Honduras decided to pursue bilateral negotiations and concluded a separate bilateral FTA.[11]
Trans-Pacific Partnership TPP Agreement was signed 4 February 2016. Following the withdrawal of the United States' signature on 23 January 2017 the agreement is defunct, and the remaining members instead concluded the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Foreign investment promotion and protection agreements

A foreign investment promotion and protection agreement (FIPA) is an agreement to promote foreign investing.

FIPAs in force

The following is a list of FIPAs in force, including date of entry into force.[7]

FIPAs signed

The following is a list of FIPAs that have been concluded and signed, but have not yet entered into force.[7]

FIPA negotiations concluded

The following is a list of FIPA negotiations concluded, and are not in force. First is the country, then the date it was concluded.[7]

Ongoing FIPA negotiations

The following is a list of FIPA negotiations that have not yet concluded.[7]

See also


  1. ^ Superseded the Canada–United States Free Trade Agreement.
  2. ^ Canada's ratification of this FTA was dependent upon Colombia's ratification of the "Agreement Concerning Annual Reports on Human Rights and Free Trade Between Canada and the Republic of Colombia" signed on 27 May 2010


  1. ^ Hart, M. (2003). A Trading Nation: Canadian Trade Policy from Colonialism to Globalization. University of British Columbia Press. ISBN 9780774808958. Retrieved 26 November 2014.
  2. ^ OECD. "OECD Statistics". Retrieved 26 November 2014.
  3. ^ Coyne, Andrew (March 16, 2012), Andrew Coyne: Canada at the crossroad of trade, archived from the original on 24 March 2012, retrieved 2 May 2014
  4. ^ "Imports, exports and trade balance of goods on a balance-of-payments basis, by country or country grouping". Statistics Canada. Retrieved 21 September 2017.
  5. ^ North American Free Trade Agreement (NAFTA), Foreign Affairs, Trade and Development Canada, 20 November 2015, retrieved 28 November 2015
  6. ^ Proximity to Market, Invest in Ontario, Government of Ontario, 2010, retrieved 2 May 2014
  7. ^ a b c d e f g h "Trade and investment agreements". Retrieved 2015-10-25.
  8. ^ "CETA: A progressive trade agreement for a strong middle class". Global Affairs Canada. Retrieved 21 September 2017.
  9. ^ "CETA in effect today as Canada-EU trade pact comes into force". CBC News. Retrieved 21 September 2017.
  10. ^ The Canadian Press (2011-02-24). "Canada, Japan study free-trade pact". CBC News. Retrieved 2011-02-28.
  11. ^ "Additional background information". Canada-Guatemala, Nicaragua and El Salvador (Formerly Canada – Central American Four) Free Trade Agreement Negotiations. Global Affairs Canada. 14 February 2017. Retrieved 25 November 2018.