Canada-US Free Trade Agreement (1989) | The Brian Mulroney Institute of Government

Prior to the creation of NAFTA, Canada and the United States formed an agreement called the Canada-US Free Trade Agreement (CUSFTA).
The agreement was agreed upon in 1986 and was signed on January 2, 1988, by US President Ronald Reagan and Prime Minister Brian Mulroney but was not enforced until January 1, 1989.
Some of the main goals of this agreement was to eliminate tariffs, reduce non-tariff trade barriers, and to begin addressing trade of services.
This agreement also established a dispute settlement mechanism to address the inevitability of trade disputes.

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