Multinationals investing in Canada benefit in different ways from Canada`s free trade agreements, including: partner countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam Between 1989 and 1996, U.S. exports of products from the most affected industries to Canada increased by 70%. Three-quarters of this increase is due to tariff reductions that reduce trade barriers from the United States. In addition, tariff reductions accounted for about one-third of the increased share of imports from the United States in total Canadian imports from all countries, from 85% to 90%. Trefler concludes that “most of the effects of free trade agreements are less than one might imagine given the heat generated by the debate.” Canada has signed free trade agreements with the United States, the United States and Mexico (NAFTA), Costa Rica, Chile, Israel, Colombia, Peru and EFTA. It also concluded discussions with Jordan. Learn more about Canada`s trade and investment agreements: types of contracts and the gradual development of trade and investment agreements. The data for this document comes from the new Table 12-10-0140-01, which contains monthly data on international trade in goods in Canada through free trade agreements. Data on Canada`s international merchandise trade with countries and groups of countries participating in a free trade agreement with Canada are also released today. These agreements can be at different stages of negotiation, from discussions to existing agreements. The North American Free Trade Agreement between Canada, the United States and Mexico came into force on January 1, 1994 and created the world`s largest post-GDP free trade region.
Until 2014, NAFTA`s GDP was estimated at more than $20 trillion, with a market of 474 million people.   Based on this success, Canada continues to negotiate free trade agreements with more than 40 countries and has free trade agreements, most recently with South Korea, Canada`s first free trade agreement with an Asia-Pacific partner. Since 2018, Canada has also concluded two other important multilateral trade agreements: the Comprehensive Economic and Trade Agreement (CETA) with the European Union and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement with 10 other Pacific countries.  On September 21, 2017, CETA was provisionally implemented, immediately removing 98% of the EU`s customs positions on Canadian products.  Canada is currently the only G7 country to have free trade agreements with all other G7 countries. Free trade with the last G7 country, Japan, began with the entry into force of the CPTPP on 30 December 2018.