During the negotiations, Canada retained the right to protect its cultural industries and sectors such as education and health. In addition, some resources, such as water, should be removed from the agreement. Canadians have failed to win free competition for U.S. government procurement. Canadian negotiators also insisted that a dispute settlement mechanism be included.  A Foreign Investment Promotion and Protection Agreement (FIPA) is an agreement to promote foreign investment. The Ontario government has worked with the federal, provincial and territorial governments to build closer ties with trading partners by negotiating agreements that remove barriers to trade and investment. As a covered organization, the University of Toronto is responsible for meeting government procurement obligations in the relevant chapters of the CFTA (Chapter 5 – Government Procurement), CETA (Chapter 19 – Government Procurement) and AQCTA (Chapter 9 – Government Procurement). A series of government studies have drawn attention to the possibility of bilateral free trade negotiations: The Economic Council of Canada`s Looking Outward (1975); Several reports of the Standing Committee on Foreign Affairs of the Senate (1975, 1978 and 1982); and the report of the 1985 Macdonald Commission (Royal Commission on Economic and Development Prospects for Canada), chaired by former Liberal politician Donald Stovel Macdonald.
Macdonald stated that „Canadians should be prepared to pledge confidence“ and to engage in more open trade with the United States. Although Mr. Macdonald was a former Liberal finance minister, the Commission`s results were welcomed by Prime Minister Brian Mulroney`s Progressive Conservative Party, although they voted against a free trade initiative during the 1984 Canadian election campaign. The conditions were right for the launch of free trade negotiations.  Over the next two decades, a number of academic economists studied the effects of a free trade agreement between the two countries. Several of them – Ronald Wonnacott and Paul Wonnacott  and Richard G. Harris and David Cox – concluded that Canadian real GDP would increase significantly if U.S. and Canadian tariffs and other trade barriers were eliminated and that Canadian industry could therefore produce on a larger and more efficient scale. Other economists on the free trade side were John Whalley of the University of Western Ontario and Richard Lipsey of the C. D. Howe Institute.
 Others feared that free trade would have negative effects, feared capital flight and job insecurity due to international relocations, and the risk of an erosion of Canadian sovereignty through closer economic relations with the southern giant. . . .