What Is The Canada-US Free Trade Agreement (FTA)?
The FTA came into effect on 1 January 1989. It was a major step in a long-term strategy to strengthen the Canadian economy by improving trade relations with, and market access to, the US while stimulating greater competitiveness in Canadian industry. In the years following implementation of the FTA, Canada’s trade balance with the US improved more than its trade balance with other regions. Exports to the US increased most in those sectors liberalized by the FTA, particularly non-resource-based manufacturing. As well, there was a significant increase in foreign direct investment (FDI) flows to Canada. Top of Page What Is The North American Free Trade Agreement (NAFTA)? NAFTA came into effect on 1 January 1994, extending the coverage provided by the FTA and bringing Mexico into the free-trade zone. It created one of the world’s largest markets, liberalizing trade, investment and other restrictions among the three countries. NAFTA ensures that companies and individuals from member countri
