Why Canada Entered Into Trade Agreement With United States

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The term trade can defined as the movement of goods and consumables across the boundaries of the two regions in order to promote the access to items which are distinct in one region but surplus in the other. The international trade is as old as the history of mankind. Earlier when there was no concept of countries, the trade simply meant the movement of goods to far distant places. As soon as man realized that an access is needed to items that are not available in his region, he travelled and found them abroad. Now the difficulty was to gain control over those items while maintaining peace. This was how, the term barter and trade came into existence and people started to enter into agreements to transfer goods for goods or goods for money. A trade is a two way process which entails the transfer of goods from one region and intake of another item from the other side. However unilateral trades also take place in which the exporting party is compensated by the monetary value of the items dispatched. The trading relationship between Canada and US span over a period of more than two centuries. The two countries are known to enjoy the most successful trading relationship in the world. The similar foreign policy of both the counties and a parallel approach towards the internal security policies assisted the traders to access each others’ markets. The extensive sharing of tourism and a common language of English spoken in both these North American countries played an important part to create great similarity in the cultural heritage of their population, which in turn enhanced the opportunities to trade across the borders. This atmosphere of goodwill allowed the trade to flourish among the two counties and enabled the economies of both t... ... middle of paper ... ...87. Morici,Peter. Making free trade work: the Canada-U.S. agreement. Council on Foreign Relations, 1990. P1- 35 Morici,Peter. Making free trade work: the Canada-U.S. agreement. Council on Foreign Relations, 1990. P 40-50 Encyclopedia of Business, "U.S.-Canada Free Trade Agreement of 1989" Bruce, Meyer. "U.S.-Canada Free Trade Agreement of 1989." 2011.http://www.referenceforbusiness.com/encyclopedia/Thir-Val/U-S-Canada-Free-Trade-Agreement-of-1989.html (accessed 13th Mar 2011). Wilson,Thomas A. A Perspective on Future Productivity Growth in Canada. University of Toronto. Taylor, Berns,Teresa, Matthew. The U.S.-Canada Free Trade Agreement: winners and losers in the Northeast-Midwest region. Northeast-Midwest Institute, 1988. Macdonald, Fried, Stone, Trezise,Donald S. , Edward R. Frank, Philip H. . Building a Canadian-American free trade area . IRPP, 1987.

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