Canada removing federal exceptions to the Canadian Free Trade Agreement
Feb. 26, 2025
Global Korean Post
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On February 21, Anita Anand, Minister of Transport and Internal Trade, announced the upcoming removal of an additional 20 federal exceptions in the Canadian Free Trade Agreement (CFTA), reducing the number of federal exceptions from 39 to 19. The majority of exceptions removed relate to government procurement, providing Canadian businesses greater opportunity to compete across the country.
This action builds on the federal government’s demonstrated leadership in strengthening commitments under the CFTA. In July 2024, the Government of Canada announced the removal or narrowing of 17 of its CFTA exceptions. Together, these successive reviews represent the removal of 64% of the Government of Canada’s exceptions in the Agreement since it launched in 2017.
The removal of these barriers comes at a critical time, as Canada positions our domestic economy to respond to the threat of tariffs from the United States. Eliminating barriers to internal trade will reduce business costs, increase productivity, and potentially add up to $200 billion to the Canadian economy.
Last year, more than $530 billion worth of goods and services moved across provincial and territorial borders, representing almost 20% of Canada’s gross domestic product.
The Canadian Free Trade Agreement (CFTA) came into force on July 1, 2017, to reduce and eliminate barriers to the free movement of persons, goods, services, and investments within Canada and to establish an open efficient, and stable domestic market.
by Global Korean Post
