Canada has failed to liberalize all public procurement. Approximately 90 per cent of U.S. government procurement is still not open to Canadian companies. On the other hand, although the First U.S. did not allow the intellectual property contained in the Canada-U.S. agreement, during the negotiations for Mexico was included in the intellectual property agreement. Canada is strengthening its free trade relations. The first is the bilateral free trade agreement with Chile in 1996. In essence, the NAFTA model has been used for Canada-Chile relations. Canada also negotiated a free trade agreement with Israel in 1996 (which the United States has had since 1985). However, these two agreements are essentially symbolic at this stage, since Canada`s trade with each of these nations is only about one-seventh of 1% of the country`s total trade.

Often, analyses of the free trade agreement show that its effects on both countries depend on the difference in value between the Canadian dollar and the U.S. dollar. In 1990-91, the Canadian dollar rose sharply against the U.S. dollar, making Canadian industrial products much more expensive to purchase U.S. products and making U.S. industrial products significantly cheaper for Canadians who no longer had to pay high tariffs on them. During the negotiations, Canada retained the right to protect its cultural industries and sectors such as education and health. Some resources, such as water, should also be removed from the agreement. Canadians have failed to win free competition for U.S.

government procurement. Canadian negotiators also emphasized the inclusion of a dispute resolution mechanism. [14] The most important for Canada was safe and stable access to the huge and lucrative U.S. market without having to constantly fight U.S. countervailing and anti-dumping duties – tariffs on Canadian imports considered unfairly subsidized by Canada or characterized in some way as unfair competition for American industry (see protectionism). Canada wanted an agreement on Canadian industrial subsidies that would be free of countervailing duties. Canada also wanted U.S. government procurement to be open to Canadian companies and that an effective and binding dispute resolution mechanism should not be based exclusively on decisions made in the United States. Some Canadians believed that a comprehensive free trade agreement with the United States would irrevocably undermine Canada`s economic, cultural and political sovereignty.