Free-trade with Canada: how to take advantage of the business opportunities abroad?

International Taxes

Free-trade with Canada: how to take advantage of the business opportunities abroad?

At a time when many countries are questioning their degree of economic openness and are retreating into protectionism, Canada opens up to foreign markets. Gradually, Canada positions itself in favour of free trade in order to facilitate its trade with other countries. This article aims to inform you about the different countries that have signed agreements with Canada in order to allow you to deploy your strategy internationally.

CANADA: FREE TRADE AND OPENING TO GLOBAL TRADE

There are currently several free trade agreements in place between Canada and other countries that facilitate doing business in foreign markets. Generally, they have the effect of reducing “tariff” measures such as customs duties, but also the effect on the “non-tariff” barriers such as standards, quotas, and protection of intellectual property.

PREFERENTIAL RULES OF ORIGIN APPLY

The rules of origin concern the criteria used to define the place where a product has been manufactured. These rules specify the proportion of the value and production that must occur collectively in Canada and in the partner country of the free trade agreement in order for the countries to benefit from it. The application of these rules allows avoiding a situation where goods are simply brought into a partner country with an aim to benefit from the preferential advantages of these agreements.

COUNTRIES THAT HAVE SIGNED FREE TRADE AGREEMENTS WITH CANADA

To facilitate your success in foreign markets, you will find below the list of current free-trade agreements between Canada and other countries.

Free trade agreements Countries concerned
North American Free Trade Agreement (NAFTA), in force since 1994 USA, Mexico
In force since 2009 Iceland, Liechtenstein, Norway, Switzerland
In force since 1997 Chile
In force since 2011 Colombia
In force since 2015 Korea
In force since 2002 Costa Rica
In force since 2014 Honduras
In force since 1997 Israel
In force since 2012 Jordan
In force since 2013 Panama
In force since 2009 Peru

 

There exist also agreements signed between the European Union and Ukraine, which will soon come into force. Other agreements (for example, with India and Japan) are still being negotiated and will be a subject of subsequent communication. The rules and exceptions of these agreements can be complex; to consult the details of each agreement, visit the website of the government of Canada, section “Trade and investment agreements” where you will find the source information.

To find out more about the trade between Canada and the European Union, read our previous article discussing the impact of the Comprehensive Economic and Trade Agreement (CETA).

Share on social networks

Find out more about the author of the article

Arnaud Philibert

Arnaud Philibert

Branch manager, Montréal, Canada

I joined the ASD Group in 2013 in its offices in France and managed daily intra- Community VAT from a portfolio of various corporate clients. Subsequently in charge of the opening and management of the ASD office in Montreal, I accompany companies in their VAT compliance issues in the European Union. I assist them in applying tax solutions for their import/export and international sales operations with our experts in the countries concerned by the requests.

News

Find all our news on VAT and customs, decrypted by our experts

ASD Group opens the doors to the world ASD Group News

ASD Group opens the doors to the world

This month, Select Antipolis magazine dedicated 8 pages to ASD Group.  Didier Delangue shares the history of the development of ASD Group. From the creation of ASD Group to its(...)

Read more
VAT registration changes in Switzerland International Taxes

VAT registration changes in Switzerland

Until now, a foreign company had the obligation to register for VAT in Switzerland, as soon as its taxable transactions in Switzerland reached 100 000 CHF (approximately 85 000€). From(...)

Read more
The dangers of the VAT fraud International Taxes

The dangers of the VAT fraud

Taxation remains a complex subject within the European Union. According to a study by the European Commission, The European Union member countries lost 151,5 billion euros in 2015, from which(...)

Read more
Update on the flat rate contribution of SIPSI Posting of Workers

Update on the flat rate contribution of SIPSI

Legislation concerning secondment declarations will change in the coming days. Zoom on future changes. WHAT IS THE DETACHMENT DECLARATION (SIPSI)? A foreign company wishing to second(...)

Read more
Strasbourg and its Eurometropolis adopt the Crit'Air sticker from 1st of November 2017 Posting of Workers

Strasbourg and its Eurometropolis adopt the Crit'Air sticker from 1st of November 2017

The affixing of the vignette Crit'Air on the windshield becomes more and more common in France. After Paris, Grenoble, Lyon and Lille, it is Strasbourg and its 33 surrounding municipalities(...)

Read more
This is the list of non-EU countries that do not have to appoint a tax representative International Taxes

This is the list of non-EU countries that do not have to appoint a tax representative

According to the article 289 A of the French General Tax Code, a foreign company that carries out transactions subjected to VAT in France must, in several cases, appoint a tax(...)

Read more
The posted worker turn-around in Europe Posting of Workers

The posted worker turn-around in Europe

After 12 hours of discussions, European Union’s Labour Ministers finally agreed upon the posted workers' reform. REDUCTION of the maximal posting duration European countries(...)

Read more
How to know if I have to file a DEB? Customs Obligations

How to know if I have to file a DEB?

Although companies can make commercial operations within the European Union freely and without a control on the borders, depending on your activity and the amount of trade you might have an(...)

Read more
European taxation of GAFA International Taxes

European taxation of GAFA

a huge subject since some months, the debate on a European taxation of digital multinationals, the « GAFA » (Google, Amazon, Facebook, Apple) aka « equality(...)

Read more
Our experts are at your disposal to answer your questions. Benefit from a free consultation!
Ask us for advice