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Consultations on the Renegotiation and Modernization of the North American Free Trade Agreement

Global Affairs Canada Jun 07, 2017

GOVERNMENT NOTICES Vol. 151, No. 22 — June 3, 2017

Consultations on the renegotiation and modernization of the North American Free Trade Agreement

The Government of Canada is seeking the views of Canadians on the scope of the renegotiation and modernization of the existing North American Free Trade Agreement (NAFTA) with the United States and Mexico.

The Government of Canada is committed to strengthening and deepening relationships with its North American partners. As the Government prepares for these discussions, the Government is seeking views on key areas in NAFTA that could be clarified or updated, and on any new areas that should form part of a modernized agreement. Furthermore, given that NAFTA has been in force for over 20 years, the Government is seeking information on the areas that have been the most beneficial to Canadian exporters. Views should also take into account reactions to potential proposals from the United States or Mexico where Canada could be pressed to take on commitments to address perceived trade irritants.

This notice is part of the Government of Canada’s ongoing domestic consultation process with stakeholders, including provinces and territories, businesses, civil society organizations, labour unions, academia, Canada’s Indigenous peoples, and individual Canadians.

Background

For more than a year, the Government of Canada has been engaged in discussions with Canadian citizens and stakeholder groups across the country about the Government’s approach to trade. The Government recognizes that trade policies need to be designed to respond and contribute meaningfully to the Government’s overall economic, social, and environmental policy priorities. In this way, the Government is working towards a progressive trade agenda that seeks to respond directly to concerns expressed by citizens and organizations in Canada and abroad with respect to trade and globalization. In that light, the Government will proceed in a manner that supports jobs and growth for Canadians — and prosperity in North America as a whole.

NAFTA has served as a strong anchor for Canadian markets in North America and has helped to expand trade opportunities for Canadian products, goods and services. NAFTA created the largest free trade region in the world when it came into effect on January 1, 1994, generating economic growth and helping to raise the standard of living for the people of the three member countries.

A total of 2.4 million Canadian jobs depend on trade with the United States, and more than $2 billion worth of goods and services cross the border every day. Canada and Mexico are each other’s third largest trading partner, with steadily growing two-way merchandise trade.

Given that the Agreement is over 23 years old, there are many clarifications and technical improvements that could be made in all trade areas covered by NAFTA, such as labour, the environment or culture. The Agreement would also benefit from the inclusion of new trade areas, such as electronic commerce, that are not currently covered, to ensure the Agreement is aligned with today’s economic realities. Canada is committed to upholding and supporting a vibrant and globally competitive North American manufacturing sector that provides stable, rewarding, and well-paying jobs for Canadians.

Additional information on the public consultations on the renegotiation and modernization of NAFTA can be found at the following addresses:

  • Global Affairs Canada (www.international.gc.ca):
    • Consulting Canadians on the renegotiation of the North American Free Trade Agreement with the United States and Mexico (www.international.gc.ca/nafta)

Submissions by interested parties

The Government of Canada is inviting all interested persons to provide information and views on the update and modernization of NAFTA. The purpose of these consultations is to identify key interests and concerns of Canadians with respect to NAFTA. More specifically, Canada is seeking views on the following areas included in NAFTA:

  • Preamble
  • Objectives
  • General Definitions
  • National Treatment and Market Access for Goods
    • Annex 300-A: Trade and Investment in the Automotive Sector
    • Annex 300-B: Textile and Apparel Goods
  • Rules of Origin
    • Annex 401: Specific Rules of Origin
  • Customs Procedures
  • Energy and Basic Petrochemicals
  • Agriculture and Sanitary and Phytosanitary Measures
  • Emergency Action
  • Standards-Related Measures
  • Government Procurement
  • Investment
  • Cross-Border Trade in Services
  • Telecommunications
  • Financial Services
  • Competition Policy, Monopolies and State Enterprises
  • Temporary Entry for Business Persons
  • Intellectual Property
  • Publication, Notification and Administration of Laws
  • Review and Dispute Settlement in Antidumping/Countervailing Duty Matters
  • Institutional Arrangements and Dispute Settlement Procedures
  • Annexes
    • Annex I: Reservations for Existing Measures and Liberalization Commitments
    • Annex II: Reservations for Future Measures
    • Annex III: Activities Reserved to the State
    • Annex IV: Exceptions from Most-Favored-Nation Treatment
    • Annex V: Quantitative Restrictions
    • Annex VI: Miscellaneous Commitments
    • Annex VII: Reservations, Specific Commitments and Other Items

The text of NAFTA can be found at www.international.gc.ca/nafta-text.

NAFTA also includes a side agreement on labour (www.canada.ca/en/employment-social-development/services/labour-relations/international/agreements/naalc.html# naalc) and a side agreement on environment (www.cec.org/about-us/NAAEC). Submissions of views on these agreements are also welcome.

New trade areas

In recent years, some free trade negotiations have included other areas not currently in NAFTA. The Government invites submissions of views on the following areas, but not necessarily limited to

  • Transparency and anti-corruption;
  • E-commerce;
  • Trade facilitation;
  • Development of small and medium-sized enterprises;
  • State-owned enterprises;
  • Cooperation and capacity building; and
  • Regulatory coherence.

All interested parties are invited to submit their views by July 18, 2017. Please be advised that any information received as a result of this consultation will be considered as public information, unless explicitly stated otherwise.

Submissions should include

  1. the contributor’s name and address and, if applicable, the name of the contributor’s organization, institution or business;
  2. the specific issues being addressed; and
  3. precise information on the rationale for the positions taken, including any significant impact it may have on Canada’s domestic or international interests.

Contributions can be sent by email or mail to the following:

Email: NAFTA-Consultations-ALENA@international.gc.ca

Mail: NAFTA Consultations
Global Affairs Canada
Trade Negotiations — North America (TNP)
Lester B. Pearson Building
125 Sussex Drive
Ottawa, Ontario
K1A 0G2

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