Trade agreements

Trade agreements are treaties between countries, or agreements among Canadian governments, that set rules for trade, such as tariffs, market access, investment protection and government procurement. Examples include the Canada United States Mexico Agreement (CUSMA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and, domestically, the Canadian Free Trade Agreement among the provinces and territories.

How BC law treats it

Treaty making is a federal executive power, but a treaty is implemented in Canadian law by Parliament or the provincial legislatures depending on the subject matter (Canada (AG) v Ontario (AG) (Labour Conventions), [1937] AC 326). Dispute settlement under international agreements such as CUSMA generally operates between states, with limited investor or private avenues.

What it means for your business

Trade agreements can lower tariffs on your goods, but only if the goods meet the agreement's rules of origin and you claim the preference correctly.

Risks and common mistakes

Claiming preferential tariff treatment without proper origin documentation can lead to reassessment of duties and penalties.

Browse the full Fulcrum Law Dictionary for related terms.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.