The reservations set out in Annex I to Chapter 12 are subject to a ratchet mechanism which guarantees the integration of future autonomous liberalisation without the need to revise or amend the text of the Agreement. Liberalization decisions are entirely the responsibility of one Party; However, as soon as a party eliminates or reduces the degree of non-compliance of a regulatory measure, the new level of treatment becomes the guaranteed minimum. However, the Ratchet mechanism shall not apply to the reserves provided for in Annex II. Overcoming regulatory barriers Governments have agreed to put in place a regulatory coordination process to address regulatory differences between legal systems that act as a barrier to trade. The CFTA is also establishing a mechanism to promote regulatory cooperation that will enable governments to develop common regulatory approaches for emerging sectors. Chapter 12 shall not apply to the supply of a service in the territory of a Contracting Party through an investment covered by Chapter 11 and to financial services covered by Chapter Fourteen. The chapter also excludes air services, the purchase of services, as well as domestic subsidies and subsidies to services and service providers. In addition, NAFTA contracting parties were allowed to maintain domestic regulatory measures that did not comply with The obligations of Chapter 12. These include most-favoured-nation (MFN) state, domestic treatment and local presence. Reservations made by NAFTA contracting parties may be limited to a particular sector or apply horizontally. The reservations that each Party has maintained are set out in the Annexes to the Agreement.
Canada, for example, has reservations about certain social services (e.g.B. health and public education), as well as minority and Aboriginal issues. All parties submitted a list of non-compliant measures at the federal level. Existing non-compliant subnational measures (at the governmental, provincial/territorial and local levels) were all taken into account when the agreement entered into force and remain reservations unless liberalized in the future. In addition to the WTO and NAFTA, Canada has free trade agreements with Israel (1997), Chile (1997), Costa Rica (2002), the European Free Trade Association (2009), Peru (2009), Colombia (2011), Jordan (2012), Panama (2013), Honduras (2014) and Korea (2015). These agreements complement the WTO agreements, which also apply to Canada`s trade relations with these countries and go further in certain areas than was possible on a multilateral basis. For more information on Canada`s bilateral/regional free trade agreements and ongoing negotiations, please visit the trade negotiations and agreements website. Work to enhance the benefits of the international trading system continues on several fronts. In November 2001, a new round of multilateral trade negotiations was launched at the Fourth Ministerial Conference of the World Trade Organization (WTO) held in Doha, Qatar.
Ministers agreed to continue negotiations on trade in agriculture and services and to conduct negotiations on further liberalization of trade in non-agricultural goods, strengthening rules on subsidies, trade mitigation measures and dispute settlement, as well as negotiations on certain aspects of trade, environment and intellectual property rights. . . .