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.  Often, analyses of the free trade agreement find 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. The Foreign Account Tax Compliance Act (FATCA) (P.L. 111-147) was passed in 2010 to reduce fraud and money laundering and was implemented in 2014. However, for U.S. citizens or dual nationals living in Canada – some of them are considered “random Americans” because they were born in the United States or because they are of American descent – the law has unintended consequences. In addition, some members of Congress are trying to repeal it.97 IN FATCA introduces, among other things, a 30% withholding tax on foreign financial institutions, unless certain reporting obligations are met. Foreign financial institutions should provide specific information on actual beneficiaries in the United States.
In addition, individuals who must submit a foreign bank and financial account report (FBAR) must report tax return information when the value of the account is $50,000 or more. The penalty for non-disclosure of this information has been increased from 20% to 40% for each transaction. In response to this legislation, Canada signed an Intergovernmental Agreement (IGA) that requires banks to pass on information about U.S. accounts to the Canadian Revenue Agency (CRA), which would verify the information and then provide it to U.S. authorities. As part of the joint reporting standard developed by the Organisation for Economic Co-operation and Development (OECD), Canada is itself beginning to exchange banking information with 50 countries that have signed the report since May 2018. Canada tightened these two requirements in a single system of financial accounting reporting of financial accounts.98 U.S. President Ronald Reagan welcomed the Canadian initiative and the U.S.
Congress gave the President the power to sign a free trade agreement with Canada, provided it is submitted to Congress for review by October 5, 1987.