The Canadian Free Trade Agreement (CFTA) was signed by all Canadian provinces and territories in 2017, replacing the previous Agreement on Internal Trade. The CFTA aims to enhance economic growth and development by reducing barriers to trade within Canada.
One of the key principles of the CFTA is the elimination of non-tariff barriers to trade. These barriers include regulations, technical standards, and licensing requirements that can create obstacles for businesses trying to sell their products or services across provincial borders.
Under the CFTA, provinces and territories are required to recognize each other`s regulatory standards and to allow businesses to operate within their jurisdiction without unnecessary restrictions. This means that a business based in one province can sell its products or services in another province without having to comply with additional regulations or standards.
Another important aspect of the CFTA is the procurement rules. The agreement ensures that businesses from any province have equal access to government procurement opportunities across Canada. This means that businesses can compete on a level playing field for government contracts, regardless of where they are based.
The CFTA also includes provisions for dispute resolution. If a business believes that a province or territory is violating the CFTA, they can file a complaint with the dispute resolution mechanism. This allows for a transparent and fair process to resolve disputes and ensure that the CFTA is being enforced.
Overall, the Canadian Free Trade Agreement is an important step towards creating a more unified and integrated Canadian economy. By eliminating unnecessary barriers to trade and ensuring fair competition, the CFTA helps businesses grow and create jobs across the country.