CFTA expected to boost economy, set open trade mindset

The Canada Free Trade Agreement, a new internal-trade agreement that will remove domestic trade barriers, is expected to add billions of dollars to the economy.

Unveiled in Toronto today, CFTA takes a “negative list” approach, meaning it automatically covers all sectors except when exemptions are listed. In a release, the Canadian Federation of Independent Business says this change is welcome given the “prior agreement on Internal Trade (AIT) required provinces and territories to list all the goods and services which they allowed to be traded. Under the new trade deal, provinces will only list items they want excluded from the deal, which will set ‘open trade’ as the default position.”

Officials have so far struggled to pin a number on the CFTA’s potential economic benefits, but Ontario Economic Development Minister Brad Duguid, who was also chair of the negotiations, says the deal is expected to add $25 billion a year to the economy.

What’s not in the deal is an agreement to streamline standards for alcohol across Canada. Instead a working group will report back by July 1, 2018.

The deal also lays the groundwork for talks to eventually establish a process to help provinces and territories regulate the trade of recreational pot.

Officials say the deal will put Canadian businesses on equal footing with foreign companies when competing for government procurement contracts across the country.

In its release, the CFIB says the deal is “a major step towards resolving often conflicting rules and regulations across provinces.” Laura Jones, executive vice-president at CFIB, says, “CFTA delivers on many of the things we have been seeking for years. […] There is more to do to eliminate some silly, irritating rules but the deal creates an innovative framework that we haven’t had before to get outstanding red tape issues resolved.”

Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.