What Constitutes Free Trade Agreement

Canada has signed a series of free trade agreements. One of the first was the North American Free Trade Agreement (NAFTA) in 1994. Some of Canada`s recent free trade agreements allow workers to move more freely between Canada and its partner countries, facilitate cross-border investment or better protect intellectual property. Unlike a customs union, parties to a free trade agreement do not hold common external tariffs, i.e. different tariffs, or other policies concerning non-members. This function allows non-parties to free themselves as part of a free trade agreement by entering the market with the lowest external tariffs. Such a risk requires the introduction of rules for determining which products originate may be preferred under a free trade agreement, which is not necessary for the establishment of a customs union. [20] In principle, there is a minimum processing time leading to a “substantial processing” of the products, so they can be considered original products. By the definition of products originating in the PTA, the preferential rules of origin distinguish between domestic and non-origin products: only the former are eligible for preferential tariffs provided by the ESTV, which must pay the import duties of the MFN.

[21] Since WTO members are required to communicate their free trade agreements to the secretariat, this database is based on the official source of information on free trade agreements (called the WTO-language regional trade agreement). The database allows users to obtain information on trade agreements that are communicated to the WTO by country or theme (goods, services or goods and services). This database provides users with an up-to-date list of all existing agreements, but those that are not notified to the WTO may be lacking. In addition, reports, tables and graphs containing statistics on these agreements, including preferential tariff analysis, are presented. [26] The world has achieved almost more free trade in the next round, known as the Doha Round Trade Agreement. If successful, Doha would have reduced tariffs for all WTO members overall. Governments with free trade policies or agreements do not necessarily abandon control over imports and exports or eliminate all protectionist policies. In modern international trade, few free trade agreements lead to completely free trade. New Zealand`s overall objective in all free trade negotiations is to create a modern, high-quality, comprehensive, forward-looking, trade-oriented agreement that will facilitate the growth and development of our trade and investment relations with our trading partners.

We therefore generally address a number of trade-related issues in the negotiations, including those listed below.