Canadian Free Trade Agreement (Cfta)

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The Canadian Federation of Independent Affairs surveyed its members prior to the entry into force of the new agreement and found that complex tax rules, high shipping costs and conflicting rules were the main challenges for internal trade. These include different rules on heavy goods vehicles (transport rules), different certification rules for food and standards within the construction industry. CFTA will work to harmonize these rules across the country. A table on reconciliation and legislative cooperation has also been set up to remove existing obstacles and prevent the creation of new obstacles. Senators called on the Canadian government to update the AIT, arguing that the new agreement should take a negative list approach, meaning it would cover anything not explicitly mentioned as released. This would require governments to identify laws, regulations and guidelines that are contrary to the AIT and that would change the rules or request a waiver. It would also mean that all newly invented technologies and services would automatically fall under the agreement. On 30 December 2018, the CPTPP entered into force among the first six countries to ratify the agreement: Canada, Australia, Japan, Mexico, New Zealand and Singapore. On 14 January 2019, the CPTPP entered into force for Vietnam. At that time, Canada had two international free trade agreements – with Mexico and the United States (see north american free trade agreement). Regulatory harmonization would mean that the federal government worked with provincial and territorial governments to harmonize the various standards, so that Canada would maintain a high regulatory standard that would not interrupt trade. CFTA has increased the amount of financial penalties that can be imposed in cases where governments act against the agreement.

The fines are population-based, and while the maximum fine in the Internal Trade Agreement was $5 million, the new maximum fine is $10 million. Canada`s federal, provincial and territorial leaders created the Canadian Free Trade Agreement, which came into effect on Canada Day 2017. . .