Review and ongoing modernization provision summary
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Agreement fact sheets
As the global economy evolves, Canada and its trade agreements must adapt to new challenges in trade and investment, including changes in the digital economy. At the same time, traders and investors need predictability to allow them to make long-term business decisions. The original NAFTA has been updated or amended 11 times over the 24 years that it has been in force, but there has been no overarching review of how the Agreement has been operating until now. Going forward, the parties will ensure that the Canada-United States-Mexico Agreement (CUSMA) is refreshed to reflect new trade and investment issues and emerging business trends. The Agreement will include a new process for regular modernization to help ensure a stable, up-to-date trading environment for Canadian consumers, businesses and investors.
Technical summary of the review and ongoing modernization clause
- Establishes a requirement for a formal review by the Free Trade Commission (comprised of ministers) of the functioning of the Agreement every six years at a minimum, with more frequent reviews possible after the six-year review if requested by a party.
- Establishes clear procedures for reviewing the Agreement, either as a whole or for specific issues. This provides an opportunity for ongoing modernization that will encourage the parties to update the Agreement, as required, in response to changes in the global trade environment.
- Enables each party to confirm their participation in the Agreement, through each party’s head of government, for a period of 16 years. The 16-year term can be renewed every six years.
- The rolling 16-year period provides adequate certainty for investors, traders, innovators and others to plan their activities and investments.
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