The EFTA-Canada Free Trade Agreement, which is focused on trade in goods, has the potential to yield significant benefits for exporters in all five participating countries. It provides new links between European and North-American supply and value chains.

Two-way merchandise trade between the EFTA States and Canada amounted to 9.8 billion USD in 2008, with EFTA’s exports reaching 6.1 billion and imports 3.7 billion USD. This made Canada EFTA’s fifth largest trading partner, while EFTA represented Canada’s eighth largest export destination.

The EFTA States’ main exports were mineral fuels, pharmaceutical and chemical products, as well as machinery. Canada primarily exported nickel, aircraft, pharmaceutical products, machinery and mechanical appliances to EFTA.

Most industrial goods, including fish and other marine products, benefit from duty-free access to the respective markets as of the entry into force of the Agreement. Basic agricultural products – covered by agreements concluded between Canada and the individual EFTA States – form part of the instruments establishing a free trade area between the Parties.

The Agreement also includes provisions relating to the elimination of other trade barriers and trade-related disciplines, including rules on competition. The areas of services, investment and government procurement are the subject of reviews foreseen within three years after the entry into force. A Joint Committee will supervise the application of the Agreement.

For further information on the EFTA-Canada Free Trade Agreement, and to access the legal texts, please click here.

Currently, EFTA has 18 Free Trade Agreements with 27 countries and is in free trade negotiations with several further partners. Together with the EFTA Convention and the EFTA States’ arrangements with the EU, EFTA’s Free Trade Agreements now provide for preferential conditions for 80% of its overall merchandise trade.