There are several other major provisions in NAFTA.
1. All tariffs on trade between Canada, the United States, and
Mexico were eliminated as of 2010.
2. The principle of national treatment (described above) applies to
foreign investment once it enters a country, but each country can
screen foreign investment before it enters.
3. Some restrictions on trade and investment are not eliminated by
the agreement. In Canada’s case, the main examples are supply-
managed agricultural products and cultural industries such as
magazine and book publishing.
4. Trade in most non-agricultural service industries is liberalized
and subject to the principle of national treatment.
5. A significant amount of government procurement is open to
cross-border bidding, though a large part is still exempt from
NAFTA.Results
The Canada–U.S. FTA aroused a great debate in Canada. Indeed, the -
Canadian federal election of 1988 was fought almost entirely on the issue
of free trade. Supporters looked for major increases in the security of
existing trade from U.S. protectionist attacks and for a growth of new
trade. Detractors predicted a flight of firms to the United States, the loss
of many Canadian jobs, and even the demise of Canada’s political
independence.