How-To Understand the Key Provisions of the Canada-Chile Free Trade Agreement

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Understanding the Key Provisions of the Canada-Chile Free Trade Agreement

How-To Guide: Understanding the Key Provisions of the Canada-Chile Free Trade Agreement

Step 1: Overview of the Agreement

  1. Gain a general understanding of what a free trade agreement is.

    • A trade agreement that eliminates taxes or tariffs between two or more countries.
    • It tends to increase trade and economic growth.
  2. Study about the history of Canada–Chile Free Trade Agreement (CCFTA).

    • It’s one of Canada’s oldest free trade agreements, in effect since July 5, 1997.
    • The agreement was expanded in 2019 to include more provisions.

Step 2: Understanding the Key Provisions of CCFTA

  1. Read about the key provisions in depth.

    • Market Access for Goods

      • Immediate elimination of tariffs on 75% of products.
      • Gradual elimination of the rest over a set period.
    • Rules of Origin

      • To qualify for tariff-free access, a product must originate in Canada or Chile.
    • Trade Facilitation

      • Measures to simplify and expedite the movement of goods.
    • Trade in Services

      • Allowances for cross-border supply of services.
    • Investment

      • Protection for investors and investments of both nations.
    • Intellectual Property

      • Provisions to protect copyright, trademarks, patents, etc.

Step 3: Practical Implications of the Agreement

  1. Analyze how the agreement affects Canada and Chile.

    • Economic Impact

      • Determine how it boosts bilateral trade between the nations.
      • Identify sectors that benefit the most from this agreement.
    • Social Impact

      • Understand how it affects employment and wage levels in both countries.
      • Evaluate if it has led to improvement in the quality of goods and services.

Step 4: Reviewing Amendments and Updates to CCFTA

  1. Stay abreast with any amendments or updates to the CCFTA.

    • Monitor official websites of both countries’ trade departments.
    • Subscribe to newsletters or alerts related to international trade.