Trade Sanctions In Canada In The Early 1900's

Over the past 150 years, Canada’s relationships with other nations has led to the development of many trade sanctions. The nations involved in these trade sanctions haven’t always had the greatest relationship, allowing Canada to become the tie between the nations, advancing the development of countless Canadian industries. Due to Canada’s relatively small population, its automotive industry, hasn’t been able to grow as a self-sustained industry, leading the industry’s development to occur solely through economic sanctions. The two dominant forces these automotive sanctions face are the United States and Europe, each having a large stake in the development of the industry.

During the early 1900s, countries focused on becoming self-sufficient,

After First World War, when mass international automotive development began, with Europe in ruins. This was a great opportunity for the automotive industry to expand within a new continent in the midst of development, because the society in Europe could form their society around the new technology, making Europe a huge automotive market. Canada’s relationship with Britain was strong at the time, because the British felt that Canada was still a part of their colonies, causing Britain to lower tariffs on Canadian exports. This extra sanction allowed the Canadian industry to get a slight advantage during the early 1920s when Canada and United States were racing to get an advantage in the automotive industry. Nonetheless, United States was able to use their superior economic status and excess population to gain the upper hand. A little later, United States began to expand their borders, they witnessed these economic sanction Canada had with Britain and saw an opening. This factor led to the Ford and General Motors creating Canadian sectors of the companies, Ford Canada and General Motors Canada; allowing the companies to have access to the sanctions. This was a critical move for the Canadian automotive industry, and showed how international trade sanctions developed this

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