In 2013, the European Union signed a trading pact with Canada in order both sides to increase their foreign market export and boost their economy sectors. This paper will examine the purpose of CETA and its impact on Canadian industry. The focus will be on food, drug, forestry, marine, and mining industries including water supplies in Canada.
CETA, as a trading pact between European Union and Canada is expected to open the markets between North America and Europe. This opening is expected to lower the costs and improve the import of European products in Canada (Chong, 2013). Such lowering of the costs will benefit the citizens who will pay less for products, therefore also fewer taxes (Johnson, 2013, p. 560). Moreover the trade would cause economic growth and creation of more jobs for the Canadian citizens (Chong, 2013). Nearly 80, 000 new work places will be created, thus bringing additional 12 billion dollars to the federal economy (Chong, 2013).
CETA as a trade pact benefits certain Canadian industry’s sectors. One of them is the Food industry which yearly will gain over 1, 5 billion dollars from export to Europe (Ryan, 2014, p. 24-26). European Union will allow Canadian beef to enter the Union without any tariffs (Kimantas, 2014, p.11). It is expected more than 35, 000 tonnes to be exported, thus increasing the initial amount of beef that is originally produced in Canada (Kimantas, 2014, p.11). In addition, the Canada’s Hilton quota, that means a limited amount of beef, can be increased; therefore the amount of beef that have chemicals or contains GMO imported in European Union also will be increased, although many European environmentalists are against such change (Kerr, 2011, p.667). Pork producers will also ...
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... pork, certain provinces can hurt the quality of water or to run out entirely of water, in order to take care for the huge amount of animals that will be produced in meat (Kimantas, 2014, p.11). It is estimated that for an example “one ton of beef requires 15,000,000 liters of water” (Kimantas, 2014, p.11). Finally, the marine ports also will suffer in order to meet CETA’s requirements of export. The change in the infrastructure of the ports to be able to facilitate the increased containerization will cost 5.8 billion dollars per year for the Canadian taxpayers. (Ryan, 2014, p.24-26).
In conclusion, although CETA will bring many advantages for the Canadian industry, it will also harm major sectors resulting in decreased sales, increased taxes and lack of investment for Canada’s economy in exchange for technology and open market to millions of customers in Europe.
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The United States is Canada's largest trading partner and is the largest market for Canadian goods. The Canada-U.S. Free Trade Agreement (1989) and the North American Free Trade Agreement (1994) have both been crucial to increasing market opportunities for Canadian exporters in the U.S.
On January 1st, 1994, a treaty that created the largest free trade area were signed into place by the trilateral of United States, Canada, and Mexico. NAFTA is a promise made by world’s most significant corporations claiming to create many high paying jobs and raise the standard of living in the US, Canada and Mexico. As we approach its 21st birthday, NAFTA now links 450 million people producing trillion dollars’ worth of goods and services each year. However, behind this seemingly good deal, it also created many underlying issues. Beginning with NAFTA giving corporation opportunities to move factories aboard to the lower-cost Mexico. Manufacturing aboard did not only outsourced American jobs, it also caused manufacturers that remained to lower
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It should be a great thing for the economies of both countries, but since the North American Free Trade Agreement was signed, American businesses almost took over the Canadian economy. When the American companies started to make more business in Canada, it brought more jobs and money to the country in the short-term. But as a long-term effect Canadians became even more depended on the U.S. as the American companies started dominating Canadian companies in Canada. Also, today Canadian manufacturers have little protection from the government when ch... ... middle of paper ... ...
For Canada, tariffs and other barriers faced by a wide range of Canadian product from various sectors will be cut; these sectors include agriculture and agri-food (Vietnam currently impose substantial tariffs on agriculture and agri-food products), fish and seafood, forestry and value-added wood products, metals and mining, and manufactured industrial goods. Those are the main export commodities of Canada into
As sea ice begins to melt, opportunity in sea transportation strikes as an interesting topic for the Canadian economy. Wintertime shipping has proven to be difficult in the Canadian arctic, due to heavier and thicker ice (Fergal & Prowse, 2007). Summertime has always been a preferable season for sea transportation partially due to the softened ice, and the amount of daylight produced, compared to wintertime darkness (Ferg...
The end of World War II came not only with the return of the soldiers and loved ones, but a general optimism towards Canada's revival. It came with a sense of better times and prosperity that would help re-establish a nation that was superior to the one before it. It was this optimism that fuelled a period of economic growth for the Canadian economy that came through the creation of suburbs, a higher GDP and the introduction of the baby boomers. Needless to say, it was this period that would help to set the foundation of the vast Canadian economy that sprouts today.
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The first approach of “Free Trade” came on September the 26th 1985 when Bill Mulroney, the Canadian Prime Minister and leader of the Canadian Progressive (socialist) Conservative Party met with American President Ronald Reagan to discuss the possibility of creating a free trade compact with the U.S.A. On October the 4th 1987 the essential negotiations came to a conclusion creating the first draft of a North American Free Trade Agreement. On January the 2nd 1989 America and Canada sign the first draft of a “Free Trade Agreement” creating the possibility of merging all of North America’s economies to compete in the global market. With the probability of Mexico entering the agreement and the idea of cheap labor for both Canadian and A...
...e USA and Canada is high and was not considered when the Agreement was made. This is the reason, many American citizens feel that there numerous illegal settlers in their country, trade deficits instead of over pluses and loss of lakhs of jobs, as before. The relations within this bloc are complex and tight; Canada and Mexico are controlled by the USA, declining their trade freedom. All this does not set up a solid base for businesses and trade.
Canada ‘s NAFTA advantage gives investors access to more than 443 million consumers and a combined
In times of economic expansion, household income tends to increase and therefore, consumers are willing to pay a higher price for red meat. Beef demand in Canada has an income elasticity of approximately 0.54%, meaning that a 1% increase in consumer income would translate into 0.54% increase in consumption. On the other hand, during recessionary periods household income will decline, and for every 1% decrease in consumer income beef demand will decrease 0.54% (Cranfield 2012). During these periods, consumers may shift their consumption to cheaper protein options or they may reduce meat consumption all