The Canadian economy is determined largely by the United States economy threw the North American Free Trade Agreement (NAFTA) and the Free Trade Agreement (FTA). The North American Free Trade Agreement was an agreement that came into effect on January 1,1995 which involves Mexico, Canada and the United States of America. This agreement is said to produce 1 billion to 3 billion dollar gains in each country. NAFTA ensures that a certain amount of goods produced and traded between the three countries has to have a minimum percentage of its parts produced in North America.
The Free Trade agreement is between the United States and Canada. The Free trade agreement came into effect in 1989 even though three fourths of trade between Canada and the United States was already free. This agreement to Canada is huge because it set up a free trade zone between the U.S and Canada, which is the largest free trade zone in the world. The Free Trade agreement is huge to Canada because 20 per cent of Canada’s GDP comes from exports to the United States. This agreement eliminated “all trade restrictions such as tariffs, quotas, and non tariff barriers.” The Canadian economy gains access to the U.S economy that is ten times its size. While the U.S economy will gain the lower-priced Canadian goods.
These two agreements show how much the Canadian economy relies on the United States economy and threw these two agreements the Canadian producers can export and import U.S goods easily and at an affordable and profitable price. In this paper I will show you how the FTA and the NAFTA help the Canadian economy export and import into the U.S economy and will show you how much the Canadian economy needs the American economy to do business.
Why are the FTA and the NAFTA important to Canada? Considering that the United States is Canada’s most important country to trade with it only seems logical that the Canadian economy would benefit from free trade that the FTA and the NAFTA give them. The FTA eliminated many things and one of those things was Tariffs. Under the FTA, one group of tariffs was eliminated on January 2, 1989 another group in 1994 and all the rest of the tariffs were removed in 1999. By eliminating the tariffs the goods that weren’t being traded before between Canada and the U.S are now b...
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...rican consumers to sell their product to and the Canadian industries rely on the goods that they import from the U.S. Take for example the Canadian auto sector without the high U.S demand for their products many of these auto industries wouldn’t be as profitable as they are now. The Canadian auto sector sells 87 per cent of its product to the U.S that is the highest percentage in the world. With major U.S corporations invading Canada it is just seems that most of the chains in Canada are American owned.
Everything in Canada seems to be interconnected with the U.S and because of the high percentage of trading that these two countries do, when the Canadian economy experience a boom it is due to the fact that the U.S economy is also experiencing a boom as well. When you compare the TSE and the Dow Jones the same usually occurs, when the Dow Jones increases so to will the TSE. As you can see the Canadian economy needs the U.S economy, the two have become interconnected. The Canadian economy needs the high population and the high incomes that the U.S has to offer. While the U.S economy needs the Canadian auto sector and the fast natural resources that the Canadian economy has to offer.
The global economy has been recovering from the financial crisis which occurs in 2008, then has a weak growth for most developed countries over 2012 and 2013. But economic activity in Canada has expanded at a faster pace than most other major advanced countries in 2012; however, economic performance in Canada has been unsteady throughout 2013 (The Economic review, 2013). After the last quarter in 2010 GDP growth rate grows rapidly, the GDP grows slowly but steadily in 2012 which remains at around 3 percent. Real GDP growth rate in Canada grows slowly in the first quarter of 2013, but increased by 5 percent in the second quarter ,then remains the same level until the first quarter of 2014 (Statistics Canada, 2014). In 2014, the Canadian government take a series economic action plan as a guide for the economy development such as improving investment conditions, ...
Prior to the World War 1, United States of America was just a developed country, which was lagged behind other countries, such as, Britain, France, and Germany, with a large land and ample natural resources. However, as the World War 1 was caused, USA was required to produce war materials by France and Britain and exported to those countries. Hence, USA gained a huge amount of money and technical skills, and so the country has grown into one of the world’s economic powers. As a result, USA could invest in Canada in order to get raw materials for its secondary industries. However, USA’s investments in 1920s brought more benefits to USA itself than to Canada. There are three major reasons for the statement. First, since branch plants were established, Canadian own businesses lost their opportunities. In addition, the ultimate purpose of USA’s investments in primary industries was to enhance USA’s secondary industries. Lastly, the skyrocketing growth of Canadian economy by the middle of 1920s resultantly benefited USA than Canada.
This constant income has proven to support our economy by more than just improving life quality. Canada’s three main exports also allow Canada to keep a more balanced budget. With an extensive amount of money being put into importing goods from other countries, exporting gives Canada a fighting chance against the terrible trag...
... the American economy for trade rather than their own country. The shift to a national highway in Canada supported trade and the economy in giving motorists the ability to travel through Canada without having to leave like which had to be done in previous years.
After three years of debate NAFTA was established in 1994. Fears concerning NAFTA included job creation, loss and transfer, wages and infrastructure. (Ganster/Lorey 188-189) However, with the implementation of NAFTA the economy grew. Ganster and Lorey reveal that bilateral trade increased by $211.4 per year from 1989 to 2004. Commerce grew by 20 percent in the first six months of 1994. There were advantages and disadvantages of NAFTA, nevertheless, NAFTA “intensified the integration of the two economies rather than distancing them.” (Ganster/Lorey 190)
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.
...munity. Although Canada is dependent on trade with the United States, NAFTA proves that the relationship goes both ways. Canada proved its worth in the global financial crisis, showing that it can practice good policy despite the dependence.
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
Throughout history, the United States has initiated policies, peace agreements, or laws which were believed to bring prosperity, and success, however those policies as a result were created in the U.S. best self-interest. One of these policies is known as NAFTA, which was a trade agreement created to open up free trade around the globe, however this policy backfired, deeply scaring and deteriorating the Latin American economy, and its people. Specifically, NAFTA known as the North American Free Trade Agreement, took effect on January 1, 1994 was a treaty which entered by the United States, Canada, and Mexico used to eliminate tariff barriers, in order to encourage economic prosperity between these three countries. A quarter century later, the
The goal of NAFTA was to systematically eliminate most tariff and non-tariff barriers to trade and investment between the countries. NAFTA has allowed U.S., Mexico, and Canada to import and export to other at a lower cost, which has increased the profit of goods and services annually. Because the increase in the trade marketplace, NAFTA reduces inflation, creates agreements on intern...
First of all, Canada benefits from close ties to America because it helps us with our economy. Back in the late 1950’s and 1960’s the opening of American branch plants were introduced to Canadians. American companies would come to Canada and open large American companies to serve to Canadian consumers. New policies started to pass down in 1965 such as the Automotive Products Trade Agreement (APTA or Autopact). This policy allowed free movement of vehicles to pass between the Canadian and American border. This also allowed American Branch plants to operate in Canada without having to pay tariffs. To this day it is estimated that more than 50% of businesses that operate in Canada are foreign owned. However this can be looked at as a positive aspect since this provided many jobs for Canadians. There was also a great persuasion for Canadian consumers to buy Canadian made items because it helps increase jobs in Canada. Another reason to why American ties helps with the Canadian economy is because America is Canada’s biggest trading partner. Considering the geographic position between Canada and America, in order to get across ones border there is only a need to cross land with a vehicle. Both of the countries are in the...
The decade preceding the Great Depression was a time of economic prosperity for Canada. It was also known as "The Roaring Twenties." Due to a boom of Canadian exports and by the growth of major industries, of which the most
Canada and the United States are the largest trade partners in the world. It is the result of the geographical position of two countries and the free trade between two countries. 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...
Lipsey, Richard G.. "Will there be a Canadian-American Free Trade Association? ." The World Economy 9 (2008): 218-238.
...tes is known as the melting pot of the world. This country is the home of many different cultures from many different areas. Cultural competency in the workplace is an issue that everyone needs to understand. By understanding the characteristics of a diversity mature individual, employees can focus on developing themselves to hold a management position in the future, and be able to relate to other cultures in the organization. Companies continue educate their staff on affirmative action, and what it takes to manage a diverse group. These companies want to supportive workplace behaviors in the organization to help achieve the bottom line, increase stockholder value.