Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across the borders of Canada, US and Mexico but it fostered shared interest in investment, transportation, communication, border relations, as well as environmental and labour issues. The North American Free Trade Agreement was groundbreaking because it included Mexico in the arrangement.2 Mexico was a much poorer, culturally different and protective country in comparison to the likes of Canada and the United States. Many members of the U.S Congress were against the agreement because they did not want to enter into an agreement with a country that had an authoritarian regime, human rights violations and a flawed electoral system.3 Both Canadians and Americans alike, feared that Mexico's lower wages and lax human rights laws would generate massive job losses in their respected economies. Issues of sovereignty came into play throughout discussions of the North American Free Trade Agreement in Canada. Many found issue with the fact that bureaucrats and politicians from alien countries would be making deci... ... middle of paper ... ...tenham: Edward Elgar, 2011. Lipsey, Richard G.. "Will there be a Canadian-American Free Trade Association? ." The World Economy 9 (2008): 218-238. McDougall, John N.. Drifting together: the political economy of Canada-US integration. Peterborough, Ont.: Broadview Press, 2006. Mckinney, Joseph. "US-Canadian Economic Relations, Twenty Years after the USA-Canada Free Trade Agreement." British Journal of Canadian Studies 23 (2010): 233-246. Rao, S. , P. Sharma, and R. Acharya.Canada–U.S. trade and foreign direct investment patterns. Calgary: Calgary University Press, 2003. Thomas, David M.. Canada and the United States: differences that count. Third ed. Toronto: Broadview Press, 2008. Weintraub, Sidney. NAFTA: what comes next?. Westport, Conn.: Praeger, 1994. Wise, Carol. "The North American Free Trade Agreement." New Political Economy 14 (2009): 133-148.
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...an business world at odds with the free trade agreement that was drafted in 1987, with the aim of encouraging better trading through pulling back the different trade barriers that are used in international trade. The softwood lumber dispute is however straining relations between Canada and the Unites states. It has put the 1987 agreement into the background and dashed any hopes of better trading relations between the two countries. Canada is a major supplier of softwood and the united state is a major market, which it is at risk of losing. Therefore the achievement of Canadian objectives remains elusive at best. Bibliography US-Canada Free Trade Negotiations (II): The Canadian Dilemma, http://www.ksgcase.harvard.edu/case.htm?PID=862 Keith Jones, (7 September 2001) “Lumber dispute strains Canada-US relations, http://www.wsws.org/articles/2001/sep2001/lumb-s07.shtml
The post-war time was a period where major changes were occurring. After being involved in two international conflicts, Canada was ready to reestablish their economy. During this time, Canada had started working on ways to become stronger and reputable. It is evident that Canada had matured through the post-war era. Canada’s economic progress left a positive impact on the growth of the country as consumerism became popular, and economic ties with America became stronger. Moreover, the removal of racial and ethical barriers contributed to Canadian social affairs such as the huge wave of immigration and the baby boom. The Canadian government also had become more aware and involved in issues impacting Canadian citizens. Canada as a whole started identifying itself as an independent nation and participating in events that brought a positive reputation amongst them. These economical, social, and legal changes helped Canada mature into the country it is today.
Spicer, Keith. 1991. Citizen’s Forum on Canada’s Future: Report to the People and Government of
Baldwin, Doug; Mahoney, Rick; Reed, Kevin; Quinlan, Don. The Canadian Challenge. Canada: Oxford-University Press, 2008.
Globalisation brought new relationships for Canada, helping their economy to become more successful. Initially, when the Second World War ended, countries were attempting to build up their own economies before embracing globalisation. Eventually, as tensions started to rise with the “Cold War”, countries started to make alliances and began strengthening their militaries. These alliances would eventually become trade relationships in the late 20th century, when globalisation was much more effective with cheaper travel, easier communication and fewer international disputes. Causing the movement of many international companies to expand to Canada. Leading to today, where intercontinental companies own over 60% of Canadian manufacturing facilities. In the past decades, countries in these automotive trades have made trade agreements with Canada to reduce tariffs. For example, Britain recently signed a free trade agreement that is expected to expand exports from 13,000 per year to 100,000 per year! This allowed Canadian companies to grow their market and caused a boost to the economy. Its effect can be seen in today’s growing economy with many companies posting annual record highs in 2017. These intercontinental trade agreements are in the midst of doubling the value of the Canadian automotive
Britain has always been Canada’s main trading partner but in the 1920s, this changed completely. American industries started buying raw materials, such as wood and minerals from Canada. By the end of 1926, Canada’s trade value was much greater with the United States than that of its trade with Britain. The positive relationship between Canada and the United States grew increasingly over the years; economic investments and American branch plants established during the 1920s, the expanding on foreign trade and the Auto Pact trade agreement after World War 2, and the Free Trade Agreement of 1989 and NAFTA. The events from the 1920s-1990s has created a relationship between Canada and the United States that has worked to benefit both countries.
The idea and policy implementation of economic integration in North America was never a new one at the time of NAFTA’s ratification. Dating back over one-hundred years ago during the Presidency of William Howard Taft, President Taft had signed into law a reciprocal trade agreement with then Canadian Prime Minister Sire Wilfred Laurier. Free Trade at the time was a polarizing issue in Canada and the deal was stifled after Canadians voted Sir Wilfred out of office. Fifty years later during the Lyndon Johnson Administration, the United States and Canada had jointly signed into law the U.S.-Canada Automotive Products Agreement that liberalized trade in cars, trucks, tires and other crucial automotive parts between the two neighboring countries
It is necessary to maintain this relationship of successful trade as it is an important aspect of Canada’s economy. It is important to understand the repercussions if a deal with the US is not arranged and how damaging it would be the Canadian economy. A free trade deal will include a plan that is motivated sustain bilateral trade, integrated manufacturing, supply chains, business interest, and economic growth within a two-way system that enables both countries to benefit. Ultimately, a Free Trade Agreement would eliminate barriers between Canada and the US, allow fair competition established by the agreement, increase and sustain conditions for investment, and create the foundation for expanded bilateral trade benefits. The exact ramifications are hard to quantify in the agreement, and ultimately depend on the value between each currency. With that being said, increase trade between Canada and the US will stimulate the economy and allow for further growth and
Due to the recent global financial crisis, such concepts as economic partnership and trade policies had to be changed with some governments around the world. While some of the economies adopted protectionist policies, others sought growth through facilitating trade with the objective of proceeding towards investigating new opportunities among current allies, as well as making future trade deals with the countries that are opening up to the global economy. Both large and small national economies as well as advanced and emerging markets looked for the means to diversify their international activities and gaining access to markets in Asia, Africa and the Middle East. As a result, the deepening of the EU-Canada economic and trade relations does not only follow the common trend but contributes also to enhancing competitiveness and prosperity of the both parties.
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.
"North American Free Trade Agreement (NAFTA)." Office of the United States Trade Representative. N.p., n.d. Web. 09 Apr. 2014. .
Hauss, Charles. Comparative Politics: Domestic Responses to Global Challenges : A Canadian Perspective. 7th ed. Boston, MA: Wadsworth Cengage Learning, 2011. Print.