North American Free Trade Agreement

The effect of the 1994 adoption of the North American Free Trade Agreement (NAFTA) was to integrate the economies of Canada, the United States and Mexico in virtually every field of commerce. Companies that set up in Greater Montréal now have direct access to the NAFTA market, which currently represents over 447 million consumers.

In addition to removing customs duties, NAFTA has provisions in the following areas:
 

• Softening of control measures to facilitate cross-border traffic
• Protection of investments and intellectual property
• Product certification

Simplified, effective cross-border traffic

Canada ranks 1st among the G7 nations and 5th among the 118 countries assessed by the Enabling Trade Index (2008). This index, which establishes the degree of fluidity of cross-border trade and time to final destination, measures the efficiency of the following components:
 

• Market access
• Border administration
• Transportation and communication infrastructures
• Business climate

Canada and the United States also cooperate on ensuring optimal border security. The border inspection system is one of the most effective in the world, with an average waiting time of under ten minutes.

Bilateral agreements

Canada has signed free trade agreements with several countries or organizations: European Free Trade Association (EFTA), Chile, Columbia, Costa Rica, Peru and Israel.

Canada and the European Union are currently negotiating a free trade agreement. In March 2009, they tabled a "Canada-European Union Joint Report: Towards a Comprehensive Economic Agreement."

For more information on these agreements and the various negotiations underway, consult the Foreign Affairs and International Trade Canada website.

Exports

Thanks to its enviable geographic location, Greater Montréal offers easy access to the North American market. Over 130 million consumers in 15 major metropolitan areas live within a 1,000-kilometre (600-mile) radius of Montréal.
 

• Greater Montréal alone accounts for over 60% of Québec’s goods exports (2006).
   
• Québec is the United States’ ninth largest trading partner, with goods exports exceeding $51 billion (2008).
   
• Canada is the United States’ second largest trading partner. U.S. imports from Canada total close to $336 billion (2008).