Canada Bilateral Trade Agreements: A Comprehensive Overview
Canada is a country that heavily depends on trade, as export is responsible for around a third of the country`s GDP. One of the primary ways that Canada fosters strong trade relationships is through bilateral trade agreements. These agreements, also known as free trade agreements, facilitate trade between Canada and other countries by reducing or eliminating tariffs and non-tariff barriers, such as restrictions on imports or intellectual property.
Canada has signed multiple bilateral trade agreements with other countries, and each of these agreements varies in terms of scope, coverage, and benefits. In this article, we will take a comprehensive look at some of the most critical bilateral trade agreements that Canada has signed and the benefits these agreements have had on Canada`s economy.
Canada-United States-Mexico Agreement (CUSMA)
In 2020, Canada signed the Canada-United States-Mexico Agreement (CUSMA). This free trade agreement replaced the North American Free Trade Agreement (NAFTA) and aimed to modernize existing trade relationships between the three countries. CUSMA has a broad range of coverage, including intellectual property, labor rights, and environmental protection. The agreement also provides improved market access for Canadian goods and services, particularly in the dairy sector, and removes tariffs on aluminum and steel.
CUSMA is expected to increase GDP by around $6 billion annually and create new jobs across all sectors of the economy.
Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) is another significant bilateral trade agreement signed by Canada. This agreement aims to create closer ties between Canada and the European Union (EU) and create new opportunities for businesses in both regions. CETA eliminates 98% of tariffs on goods traded between Canada and the EU, making it easier and more affordable for businesses to trade with each other. Additionally, CETA includes provisions that promote environmental protection, labor rights, and cultural diversity.
Since CETA`s implementation, Canada`s exports to the EU have increased, with growth in sectors such as forestry, seafood, and agriculture. The agreement has also created new opportunities in the service sector, such as business travel and consulting.
Canada-United Kingdom Trade Continuity Agreement
The Canada-United Kingdom Trade Continuity Agreement is a recent bilateral trade agreement that came into force in April 2021. The agreement replicates the provisions of CETA and aims to ensure that trade between Canada and the United Kingdom continues uninterrupted post-Brexit. The agreement maintains tariff-free access for goods traded between the two countries and eliminates tariffs on many agricultural products.
The Canada-United Kingdom Trade Continuity Agreement is expected to result in increased trade between the two countries in sectors such as the automotive and aerospace industries.
Bilateral trade agreements are essential to Canada`s economy, as they help create new opportunities for businesses and facilitate trade between countries. The agreements discussed in this article are just a few examples of the many bilateral trade agreements that Canada has signed over the years. While each agreement has unique provisions and benefits, they all aim to create a more prosperous and inclusive global economy. As Canada continues to navigate the challenges of conducting international trade, bilateral trade agreements will play a vital role in shaping the country`s economic future.