Impact of NAFTA on Canadian Trade and Industry

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Canada has also benefitted from reduced trade barriers between themselves and both Mexico and the United States (Mastrianna, 2013, pp. 297-319). Between 1997 and 2011, the volume of trade between Canada and the United States increased dramatically (Mastrianna, 2013, pp. 297-319). In 2011, Canada exported goods worth roughly $226 billion to the United States alone (Mastrianna, 2013, pp. 297-319). Altogether, trade between Canada and the U.S. is worth approximately $500 billion per year (Mueller, 2011, pp.1-20). Thus, NAFTA has helped a number of industries in Canada by providing improved access to the American and Mexican markets. With fewer tariffs and other barriers limiting the potential for economic growth, companies and industries in Canada, the United States, and Mexico have all been able to access markets of increased size and value. This has allowed these firms to increase their exports and profit more, thanks in part to the presence …show more content…

It is noted that the positive projections advanced prior to a free trade agreement being established have now been discredited as being based on a poor methodology and flawed results (Grinspun & Shamsie, 2007, pp. 3-53). One of the reasons that many Canadian industries have not benefitted from free trade is the presence of continued barriers limiting the capacity of Canadian firms to be competitive in U.S. markets (Grinspun & Shamsie, 2007, pp. 3-53). Canadian exporters of beef, lumber, and a range of other commodities have been unable to compete successfully in U.S. markets, thanks to ongoing efforts by American producers to engage in different forms of protectionism (Grinspun & Shamsie, 2007, pp.

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