Canada is regularly referred to as a trading nation, with total trade accounting for more than two-thirds of its GDP (the second highest level in the G7 after Germany). [1] [2] Of all of this trade, approximately 75% are wiretapped with countries that are part of free trade agreements with Canada, particularly with the United States through the North American Free Trade Agreement (NAFTA). [3] At the end of 2014, bilateral trade in Canada reached $1 trillion for the first time. [4] Canada`s foreign direct investment rules have been liberalized, so that U.S. companies wishing to establish themselves in Canada remain limited. Since the agreement, thousands of other Canadian companies have been acquired by U.S. investors and many Canadian direct investments have been injected into the U.S., increasing the degree of integration of economies. Some Canadians believed that a comprehensive free trade agreement with the United States would irrevocably undermine Canada`s economic, cultural and political sovereignty. Some would say that this has not been done, because Canada has continued to protect its cultural industries (as the agreement provides) and has an independent foreign policy vis-à-vis nations such as Cuba. Subsequently, the United States and Mexico announced their intention to implement a trade and investment liberalization agreement. Canada asked to be involved in the negotiations. As a result, the North American Free Trade Agreement (NAFTA) came into force on January 1, 1994 and created a vast free trade area of approximately 370 million people.

It extended and replaced the agreement between Canada and the United States, under which it was modelled. Multinationals investing in Canada benefit in a variety of ways from Canada`s free trade agreements, including: the infographic “A Look at Free Trade in Canada” is now available through Statistics Canada – Infographics (catalogue number11-627-M). Canada is conducting exploratory discussions on bilateral or multilateral free trade agreements with the following countries and trading blocs, although formal negotiations have not yet begun:[7] The liberalization process has nevertheless significantly increased Canadian exports to the United States. Between 1990 and 1995, these shipments increased by 12 per cent per year, almost double the growth rate of Canadian exports to the rest of the world. The largest increases were recorded in sectors with the lowest U.S. tariffs. Exports of non-resource products grew twice as fast as resource-based raw materials, particularly technology-intensive products such as office equipment, telecommunications products, precision instruments and a host of other equipment and machinery.