CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more. favicon LAWANDTAX-NEWS.COM


Articles »

Country Home Pages

British Virgin Islands
Hong Kong
Isle of Man
South Africa

Daily Tax Quote

Lowtax Network Sites
Lowtax Network Portal: 'Low-tax' business and investment in the top 50 jurisdictions covered in exceptional detail.
Tax News: Global tax news, continuously updated through the day.
Expat Briefing: A free online publication serving international expatriates and featuring world news, forums, events, in-depth country information and reliable investment and personal taxation guides.
Law & Tax News: Daily news and background data on tax and legal developments for international business.
Offshore-e-com: A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library: One of the web's largest and most authoritative business and investment information sources.
US Tax Network: The resource for free online US taxation information, covering: corporate tax, individual tax, international tax, expatriates, sales and e-commerce tax, investment tax.
Offshore Trusts Guide: OTG publishes news, features and newsletters on the use of offshore trust structures.
TreatyPro: Online tax treaty resource.
Global Incorporation Guide [GIG]: A BSI / Lowtax Network international business smart tool.
Canadian Governments Agree Internal Trade Deal

by Mike Godfrey,, Washington Wednesday, April 19, 2017

Canada's federal, provincial, and territorial governments have signed a new free trade agreement, which will reduce internal barriers to trade, investment, and worker mobility.

The Canadian Free Trade Agreement (CFTA) will enter into force on July 1, and replace the existing Agreement on Internal Trade (AIT), which has been in place since 1995. Negotiations began in December 2014. Trade within Canada represents about one-fifth of Canada's GDP, or CAD385bn (USD286.9bn) annually, and accounts for nearly 40 percent of all provincial and territorial exports.

The CFTA establishes free trade rules that will apply across the Canadian economy. In contrast to the AIT, the CFTA's rules will apply automatically to almost all areas of economic activity in Canada, with any exceptions being clearly identified. It will cover most of the service sector, and coverage will be extended to the energy sector for the first time.

In addition, the CFTA will be better aligned with Canada's commitments under international trade agreements. The intention is to reduce compliance costs for Canadian firms that do business both at home and internationally.

The CFTA commits parties to establish a working group that will assess options for further liberalizing trade in alcohol, and triggers future negotiations on financial services.

The governments have also agreed to establish a regulatory reconciliation process to address regulatory differences across jurisdictions that act as a barrier to trade. The CFTA will introduce a mechanism to promote regulatory cooperation.

Brad Duguid, Chair of the Internal Trade Renewal Negotiations, said: "The new Canadian Free Trade Agreement represents an important step forward for Canada's economic union. By supporting a modern, open, and competitive economy, the agreement will help create new opportunities across the country. Businesses can look forward to new markets for their products and services, consumers will enjoy more choice and convenience, and the Canadian economy will benefit from more innovation and growth."

Corinne Pohlmann, Senior Vice-President of National Affairs and Partnerships at the Canadian Federation of Independent Businesses, commented: "The new negative list approach brings a greater level of transparency that will make an enormous difference in the way small businesses will be able to trade. It brings CFTA in line with the Comprehensive Economic and Trade Agreement (CETA) with Europe. Prior to this new strategy, it was possible for European companies to have better access to Canadian trade opportunities than a business in a neighboring province."

Important Notice: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.

All rights reserved. © 2017 Wolters Kluwer TAA Limited