Countries need freer international trade to exploit the gains that come from increased specialization, enhanced productivity, and greater competitiveness. Canada's recent experience in this area first involved signing the Canada-U.S. Free Trade Agreement, which came into effect in 1989. In 1994, Mexico joined the group through the North American Free Trade Agreement (NAFTA).
However, the general premise for regulation at that time was based on the fact that the sector would cater to niche activities and geographies. It would make its presence felt in remote and inaccessible areas of the country where formal financial services were difficult to reach, complementing the existing banking sector.