In 1994, three countries formed the world’s largest free trade zone. This free trade zone was called The North American Free Trade Agreement (NAFTA). This organization was founded by Canada, the United States, and Mexico. The main goals of the agreement was to strengthen the special bond of friendship and cooperation among each other’s nations; and to create, expand, and secure future market opportunities and business. NAFTA is not lead by one nation, so one country does not make all of the decisions; it is actually a combined effort of Canada, the United States, and Mexico. NAFTA has several headquarters and branches all over Canada, the United States, and Mexico. NAFTA is funded through each of the countries government; this is mainly used for building corporations and headquarters or buying land to create trade opportunities. NAFTA had many successes and achievements, including promoting trade and investment among the partner countries and making the North American economy more cohesive and efficient. Canada and Canadian citizens are both deeply involved in NAFTA; however it is only run by the Canadian government along with of course the United States and Mexico. NAFTA’s future plans include expanding the free trade zone with eight new countries. This organization will be functioning in the next ten years for sure because of continued growth and surplus. This will be explained in more detail, in the following paragraphs, proving that NAFTA is one of the most important organizations of Canada and the world. To begin, NAFTA is a 15 year old cooperation so it has a small but effective historical background. Canada, the United States, and Mexico are the creators of NAFTA in search of creating the world’s largest free trade zone... ... middle of paper ... ... three different ones. NAFTA should feel safe because there is only two real ways that the organization can be prevented from functioning, the Canadian government goes bankrupt or they shut down NAFTA. NAFTA has many achievements and successes as described before such as the extreme trade growth and relationship gained with the United States and Mexico. Canada may also be the biggest contributing factor to this organization because most of the exports of NAFTA are found in Canada. NAFTA is only getting bigger with expected growth, which will create a surplus on the money side, thus allowing the agency to expand and even move into some parts of South America. We’ll see the organization in its prime for years to come. Canada, the United States, and Mexico would not be the same without NAFTA and NAFTA would not be the same without Canada, the United States, and Mexico.
The article goes over the affects this deal has on some local Canadian industries. For example, the author explained that this deal will possibly increase the amount of imported foreign car parts and maybe even dairy products, which could mean a better selection as well as lower prices for consumers but also hurt some workers who operate locally in these businesses. Currently the absence of foreign products in the Canadian dairy market means that there is less selection for a higher price, but this also means that local farming communities can have stable incomes and can be
Canada was influential in the development of NATO; it had been a member of NATO since it was founded in 1949. The purpose of the North Atlantic Treaty Organization was to unify the western allies and strengthen the military as a reaction to a possible threat from the Soviet Union and its allies. In 1949 many countries signed a contract to be part of the organization including: Belgium, Great Britain, Italy, Iceland, Luxembourg, United States, Canada, Netherlands, Denmark, Norway and Portugal.² Canada gained benefits from being part of NATO such as the ability to have a say in alliance policy, and now Canada would be able to “deal with the US on a multilateral context.” ¹ NATO also provided safety for Canada from the potential aggression of the Soviet Union. Canada’s armed forces were the most engaged, and active responsive armed forces within NATO. Canada’s priority in NATO was to ensure that all allies remain modern and are able to face the threats during the time period.
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 meeting of minds between Chile and the United States has brought about a long awaited union pertaining to free trade. Chile responded enthusiastically when presented with the opportunity to become a part of 1994's North American Free Trade Agreement (NAFTA) but because of the issue of presidential fast-track trade negotiation authority, the merger did not come to fruition. Now, nearly a decade later -- after negotiations began in the year 2000 -- Chile and America have come to their own agreement with regard to free trade, one that is both historic and comprehensive in nature.
The Canada-U.S. trade relationship is not static. Political and business strategies and practices change on both sides of the border, and events occur such as "mad cow disease" that are beyond almost everyone's control.
...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.
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...
On the topic of terrorism, Canada is not impervious to the issue of terrorism. Not only are there international terrorists in Canada but there are domestic terrorists. These terrorists are active in terrorist activities within the borders of Canada and they support terrorism in other countries (“Building Resilience Against Terrorism: Canada’s Counter-terrorism Strategy”). Terrorism has been a concern for a while. Canada is not only concerned with the domestic threats against them, but they are also concerned with the attacks on the United States, Madrid, London, Bali, and Amsterdam (“Permanent Mission of Canada to the United Nations”).
...be tempered by their desire to be a wealthy nation as well. Becoming a wealthy nation means becoming economically dependant on the US. Foreign ownership is on the rise in Canada, our vast natural resources up for grabs by the energy hungry US and there are less and less restrictions every day for trade within North America. NAFTA has created a good environment for Canada thrive, exports are increasing and we are exporting a safe amount, as not to deplete or decimate any one of our natural resources. Canada is in a good position. We have a small population, great resources and neighbours who have an insatiable need for our goods. Unfortunately this may mean giving up some of our Canadian identity, as if that hasn’t already happened. Yes, our import and exports are mainly to one country, the US, but why not be dependant on the most powerful nation on the planet, ever.
Currently, Canada remains the world’s second largest country, full of vast and rich resources from all corners of the nation. None of the accomplishments and achievements that Canada has made to date would have been possible without Confederation. Without intense pressure from the Americans, and without the common goal that a few men shared of unifying a country, Canada would not be the strong, free, independent and united nation that it is today.
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... ... middle of paper ... ...
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...
...e USA and Canada is high and was not considered when the Agreement was made. This is the reason, many American citizens feel that there numerous illegal settlers in their country, trade deficits instead of over pluses and loss of lakhs of jobs, as before. The relations within this bloc are complex and tight; Canada and Mexico are controlled by the USA, declining their trade freedom. All this does not set up a solid base for businesses and trade.