Government Reduces Federal Exceptions in Trade Agreement

The Canadian government is set to remove 20 federal exceptions from the Canadian Free Trade Agreement (CFTA), which will decrease the total number from 39 to 19. This adjustment mainly affects government procurement policies and aims to broaden opportunities for Canadian businesses to compete within the domestic market.

This change was announced by the Honourable Anita Anand, Minister of Transport and Internal Trade. According to the statement, this initiative is part of broader efforts to reduce internal trade barriers that can lead to increased costs and decreased productivity for businesses in Canada.

The government previously removed 17 exceptions in July 2024, marking a 64% reduction in the number of exceptions since the CFTA's inception in 2017. The announcement also encourages similar actions from provincial and territorial governments as a measure to alleviate the economic burden on Canadian businesses.