Language selection

Government of Canada / Gouvernement du Canada

Search

Removal of Federal Exceptions in the Canadian Free Trade Agreement

The Government of Canada has completed successive reviews of all federal exceptions in the Canadian Free Trade Agreement (CFTA). These reviews have resulted in the removal and narrowing of 68% of federal exceptions since the CFTA was launched in 2017.

The majority of exceptions removed relate to procurement, positioning Canadian businesses to compete for government contracts across the country.

The list of federal exceptions that have been removed, as well as rationales for those remaining are outlined below.

Federal exceptions removed in the Canadian Free Trade Agreement

The Government of Canada has removed the following 33 federal exceptions from the CFTA since it was signed in 2017.

The list references numbering from the July 1, 2017 version of the Agreement.

Annex I of Part VII – Exceptions for Existing Measures

  1. Canadian Arsenals Limited Divestiture Authorization Act, Eldorado Nuclear Limited Reorganization and Divestiture Act, Nordion and Theratronics Divestiture Authorization Act
  2. Export and Import Permits Act
  1. Telecommunications Act, Radiocommunications Act
  1. Canada-Newfoundland and Labrador Atlantic Accord Implementation Act, Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, Canada Petroleum Resources Act, Territorial Lands Act, and Federal Real Property and Federal Immovables Act
  2. Pilotage Act
  3. Canada Post Corporation Act

Annex II of Part VII – Exceptions for Future Measures

  1. Federal infrastructure investments;
  1. Transportation and transmission on pipelines and power lines;
  1. Exclusive service suppliers in the transportation sector;
  2. Aviation and air transportation;
  3. Regional economic development;
  4. Importation of Intoxicating Liquors Act; and
  5. Temporary Foreign Workers Program and International Mobility Program.

Annex 519.1 – Procurement Exceptions

  1. Excluded Entities
    1. Senate
    2. House of Commons
    3. Library of Parliament
    4. Office of the Senate Ethics Officer
    5. Office of the Conflict of Interest and Ethic Commissioner
    6. Parliamentary Protective Service
  2. Exceptions and Notes
    1. b) commissions under the Inquiries Act;
      g) any successor entity not covered under this chapter;
      h) shipbuilding and repair, including related to architectural and engineering services, by any Crown corporation for which the Minister of Transport is specified;
      i) relation to an international crossing between Canada and another country, including the design, construction, operation or maintenance of the crossing, as well as any related infrastructure;
      k) Canadian Air Transport Security Authority for security screening, including services and goods that are related or incidental to security;
      l) financial management consulting services of a confidential nature;
      n) services provided by veterinarians;
      o) advisory and other services provided to Export Development Canada in the connection with the provision of services to their customers;
      p) services related to legal boundary surveys on Canada Lands in accordance with the Canada Lands Surveys Act;
      q) public relations services; and
      r) international assistance, including development aid.
    2. a) Industrial and Technological Benefits Policy;
      b) Industrial and Regional Benefits Policy
    3. newly created entities for the safety of Canadians

Federal exceptions remaining in the Canadian Free Trade Agreement

As part of its review, the Government of Canada ensured, to the fullest extent possible, that remaining federal exceptions under the CFTA are essential for supporting Canadian interests and do not create meaningful barriers for internal trade in Canada. Specifically, they are required to uphold Canadian interests, such as national security, national economic and social policy, and/or the Government of Canada’s responsibility to support regional interests. Remaining federal exceptions under the CFTA may support one or more of these Canadian interests.

Why Federal Exceptions Remain in the Canadian Free Trade Agreement

1Rationale 2Federal Exception in the CFTA
National Security: Ensure the Government of Canada can uphold public safety and national security, which goes beyond the scope of the CFTA.

Annex I of Part VII – Exceptions for Existing Measures

Ensures the Federal Government can Regulate Foreign Investment and Foreign Ownership in Federally Incorporated Corporations and other entities:

  1. Canada Business Corporations Act, Canada Cooperatives Act;
  2. Investment Canada Act;

Annex 519.1 – Procurement Exceptions

  1. Excluded Entities
    1. Canadian Security Intelligence Service;
    2. Communications Security Establishment;
    3. Financial Transactions and Reports Analysis Centre of Canada
  2. Exceptions and Notes
    1. b) any corporation of the Royal Canadian Mounted Police;
      c) any corporation incorporated or acquired by or on behalf of any service established by an Act of Parliament to collect information and intelligence respecting the security of Canada;
      g) space projects for the Canadian Space Agency;
National Economic and Social Policy: Ensure the Government of Canada can fulfill its responsibility to advance national economic and social policy.

Annex II of Part VII – Exceptions for Future Measures

  1. Ensures the federal government can regulate fish licensing or related activities, including entry of foreign vessels;
  2. Ensures the federal government can regulate marine transportation services in Canadian waters;

Annex 519.1 – Procurement Exceptions

  1. Excluded Entities
    1. Bank of Canada
    2. Canada Pension Plan Investment Board and its subsidiaries; and
    3. Public Sector Pension Investment Board and its subsidiaries.
  2. Exceptions and Notes
    1. a) any entity not wholly-owned by the Government of Canada;
      d) intervention activities of the Canada Deposit Insurance Corporation or its subsidiaries, or procurement by any subsidiary created in respect of such intervention activities;
      e) Canada Lands Company Limited or its subsidiaries;
      f) transportation services, leasing, and rental of transportation equipment, or transportation services incidental to a procurement contract by Marine Atlantic Inc., Canada Post Corporation or pilotage authorities established pursuant to the Pilotage Act;
Supporting Regional Interests: Ensure the Government of Canada can fulfill existing agreements and accords with provincial and territorial governments, as well as allow the federal government to effectively respond to evolving regional needs.

Annex I of Part VII – Exceptions for Existing Measures

Ensure the province or territory is the primary beneficiary of its offshore oil and gas exploration and development:

  1. Canada Oil and Gas Operations Act, Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, Canada-Newfoundland and Labrador Atlantic Accord Implementation Act, Canada-Yukon Oil and Gas Accord Implementation Act, Yukon’s Oil and Gas Act, measures implementing the Northwest Territories Oil and Gas Accord, including implementing measures that apply to or are adopted by Nunavut, and measures implementing the Accord between Canada-Quebec for the joint management of petroleum resources in the Gulf of the St. Lawrence, or any other similar federal-provincial accords related to the joint management of petroleum resources.
  2. Hibernia Development Project Act, Canada-Newfoundland and Labrador Atlantic Accord Implementation Act.

Annex II of Part VII – Exceptions for Future Measures

  1. Ensures Canada’s passenger rail transportation services can reflect regional needs, including service to remote communities, and Canada’s freight rail transportation system is integrated and competitive;

Page details

Date modified: