BSM 100 – Take Home Exam Question #1: Korea Free Trade Agreement (CKFTA) Based on my research in Regards to the Canada – Korea Free Trade Agreement (CKFTA), I agree with the 41% of Canadians that support entering a free trade agreement with South Korea. According to Stephen Harper and his official Prime Ministers website – the main focus of entering this trade agreement with South Korea is to create jobs and opportunities for Canadians in every region of the country. The trade is expected to create benefits to the Canadian populations, by providing Canadian businesses and workers access to Korea - which they haven’t had before – which has a an annual Gross Domestic Product of $1.1 trillion and a population of 50 million people which continues to grow (Soeul, 2014). Benefits of Consumers The trade will ensure Canadians thousands of new jobs in various sectors such as the industrial goods sector, which deals with information and communications technology, aerospace, metals and mineral and much more. Along with the industrial sector, the agriculture sector will also have new jobs created in agriculture food products, wine, seafood, and other the food products. The wood and forestry products industries will also have an increased job market. Along with the increased amount of jobs, there will be a huge increase in Canadian exports to Korea, which is expected to increase the exports by 32% and boost Canada’s economy by 1.7 billion each year. With regards to the imports there will be a reduction of tariffs and non-tariff measure for Canadian Companies. When the agreement is fully functioning, Korea will remove duties on 98.2 per cent of its tariff lines covering majority of Canada’s imports. Korea’s tariffs are currently about three ti... ... middle of paper ... ...s to protect against import surges when the agreement takes place (Soeul, 2014). Korean tariffs will be eliminated on all light vehicles (8 per cent tariff) and all automotive parts (tariffs ranging from 3 to 8 per cent) (Soeul, 2014). Canadian producers and exporters of automotive products already have the resources and abilities to export to other Asian countries. The Canada-Korea Free Trade Agreement will provide a significant advantage for Canadian automotive stakeholders looking to further expand market opportunities in Korea (Soeul, 2014). Overall Overall, the terms and agreements in regards to the Korea Free Trade Agreement (CKFTA) seem to be beneficial to Canada for various reasons including those discussed above. I believe that if more people were more educated about the trade, then the percentage of the population that agrees would be much higher than 41%.
To begin with, the companies of USA were located in Canada, even if they are controlled by USA. “The US companies built the factories in order to avoid the tariffs when they import the wares to Canada” (Bell, 2012, para.1). In other words, as the US companies could establish many factories in Canada as well as they circumvented the importing tariffs, they could get double profits by both two advantages of setting up the branch plants. Additionally, since the branch plants, partially for automobile companies, thrived, many Canadian auto-industries lost their control. “It was in these boom years, as well, that Canadian control of the industry was lost, as the US automakers with whom the Canadians had partnere...
...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
“Merchandise imports and exports between "Canada" and "World", by Harmonized System section.” Statistics Canada. N.p., March 2014. Web. 1 March 2014
Free trade and economic integration have been implemented by the Canadian government as it allows the Canadian economy to grow stronger, reduce trade barriers and improv...
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...
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.
this is up by 50% from 1988, when they first signed a free trade agreement.
The North American Free Trade Agreement (NAFTA), is an agreement signed by Canada, Mexico, and United States which advocates free trade. If successful, the agreement promised to make the whole North American continent an economic zone. This was the agreement if the world’s largest free trade relationship. It was then passed in 1944 and brought many benefits to three countries, epically Canada. When NAFTA initiated it set out for free trade to North America but Canada Benefitted greatly. Frist being NAFTA made cheaper prices and variety of products for products for consumers. NAFTA also has had an effect on employment and wages. Finally, NAFTA has helped to benefit in Canadas economy. Canada has benefitted greatly with the initiation of NAFTA.
As long as NAFTA has been in existence, there has been controversy over its benefits and costs. Since NAFTA is viewed as a neoliberal trade and investment agreement, supporters and critics alike are able to expand its validity to a grander scale when dealing with the question of whether free trade itself is beneficial or harmful. During the life of NAFTA, many valid arguments for and against free trade have been brought to the forefront.
With trading through U.S and Mexico, Canada has been greatly growing the economy. Companies in Canada can import products which are cheaper and more reasonable to sell to Canadian consumers, so that they are able to make more money than they manufacture the products themselves. Moreover, NAFTA has created jobs. When people think about NAFTA has created a lot of jobs in variety industries, they always think that only people who are living in the country will get benefits of that. Nevertheless, it is not. Also, companies have a benefits of creating jobs by NAFTA because creating jobs means that a company has more opportunities to manufacture products by increased employees and
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
Since the implication of free trade between the three countries of North America back in 1994 the effects of that agreement are just now becoming apparent, both short term and long term. There was little doubt as to how both Canada and most definitely Mexico would benefit from Nafta. What was yet to be seen was the impact it had on previous concerns of the United States.(Contesting Globalization) Most economists and even ordinary citizens could understand Canada and Mexico’s enthusiasm when free trade, destroying tariffs, was proposed. After all, the United States has long been the major consumer of exported goods in both countries. No longer having to pay taxes on goods imported into the United States meant larger sales and more profits for all Canadian and Mexican businesses. These profits were foreseen as perpetual economic boosts in their respective country. These boosts created opportunities for more workers to be hired, lowering unemployment and helping to improve the quality of life of citizens in both countries.
Lipsey, Richard G.. "Will there be a Canadian-American Free Trade Association? ." The World Economy 9 (2008): 218-238.
The Auto Pact of 1965 was a free trade agreement that allowed for the movement of both automotive parts and finished vehicles across the border, tariff-free, under the condition that automobile production levels would not fall below 1964 levels, essentially preserving the Canadian auto industry. Prior to the agreement, the automotive manufacturing sector was in a state of uncertainty; plagued with decreasing exports and a flood of imports, both overseas and south of the border, ...
This country is of particular interest as it is one of the four Asian Tiger economies, whose rapid industrialisation and growth between the early 1960’s and 1990’s caused it to emerge as one of the most dynamic and fast-changing countries in Asia and the world. Much like Japan, its economic development was marked by heavy investments in foreign technology and imitation through reverse-engineering. By limiting FDI, South Korea maintained control over its industrial base and encouraged investments in R&D.