ipl-logo

The Pros And Cons Of NAFTA

620 Words3 Pages

The North American Free Trade Act (NAFTA) came into effect on January 1, 1994. One of the promises of the Trump administration in the US was to renegotiate the trilateral free trade deal, which operates between Canada, Mexico, and the United States.

While trade talks about the deal have been contentious, experts have long speculated NAFTA is good for Canada. On the other hand, many people were opposed to the deal when it first arrived nearly a quarter-century ago, and there are those who believe NAFTA has done more harm than good for the great white north.

Continuing trade talks have left many wondering what influence NAFTA has on Canada’s imports and exports.
How Free Trade Works
Before discussing the effects NAFTA has on Canada’s imports and exports, it helps to begin with a quick refresher on how free trade functions. When countries enter into these agreements, they agree to give each other preferential treatment when it comes to imports and exports. Under NAFTA, this means the elimination of tariffs on many products moving among Canada, the US, and Mexico. …show more content…

Canada is the US’s second-largest trading partner.

Mexico is Canada’s third-largest trading partner, and Canada ranks fourth on Mexico’s list.
Import/Export Statistics
Total trilateral trade between Canada, Mexico, and the United States has reached almost US$1 trillion under NAFTA. This represents a three-fold increase in trade since 1993. In the same period, trade between Canada and the US doubled.

Canada relies heavily on US demand. Nearly 80 percent of all Canadian exports were bound for the US market in 2016. Around $2.4 billion worth of goods and services cross the Canada-US border each day.

Canada also relies heavily on imports from the US. In 2016, nearly $266 billion made its way from the US into

Show More
Related

Canada Dbq Essay

343 Words | 2 Pages

From 1929 to 1945, Canada looked to become trustworthy trading partners with the United States. A way in which Canada strengthened its trade with the United States was by branching out from just being trading partners with Britain. Even though Britain was Canada’s primary trading partner, it was not until the 1920’s that Canada began to trade with the United States. A decrease in tariffs from 1913 to 1930, and zero or near-zero tariffs imposed by the U.S Revenue Act of 1913, allowed Canadian exporters to trade freely with the United States. As a result, Canadian exports to the United States rose from $104 million in 1911 to $315 million in 1930.

Read More

Reciprocity Debate Of 1911 And NAFTA Impact The Development Of Canada

490 Words | 2 Pages

Along with the Confederation to begin the formation of Canada, the reciprocity debate of 1911 and NAFTA further impacted the development of Canada, because of its economic significance. The reciprocity debate of 1911 and NAFTA pronounced Canada economically through the flourishing of trade with other countries. The reciprocity agreement between Canada and the United States was instated to protect tariffs on goods traded between the two countries. Consequentially, the economy for Canada increased, with exports to the United States growing by 33%, post treaty.

Read More

How Did The Nafta Affect Canada

648 Words | 3 Pages

Throughout Canadian history, free trade in particular has changed Canada and it’s economy for the better. The free trade agreement (FTA) signed in 1989, assisted Canada’s economy in many ways, such as removing most of the tariffs on trade goods, increasing trade with the USA, and leading the way to the creation and signing of the North American Free Trade Agreement (NAFTA). All of these boosted Canada’s economy and strengthened the bonds with new and old trade partners. After this agreement was established, it becomes clear very quickly that the FTA was exactly what Canada needed. As well as opened new doors to opportunities for Canada.

Read More

Close Relationships In Canada

956 Words | 4 Pages

The NAFTA is a free trade agreement that was formed between the three countries of North America, or more specifically Canada, the United States, and Mexico. The main function of NAFTA is to eliminate all trade barriers between the three countries, such as tariffs, to lower the prices of groceries produced by the three countries involved. NAFTA grants the “most-favoured-nation” status to goods produced by the countries involved, which means that these goods must receive equal treatment as domestic goods. They also cannot give a better deal to non-NAFTA countries. This trade agreement greatly benefited the economies of the three countries, and increased the Canadian-Mexican trade eightfold and total merchandise trade between Canada and the United states more than doubled.

Read More

Pros And Cons Of Nafta

1350 Words | 6 Pages

The North American Free Trade Agreement is an arrangement between the United States, Canada, and Mexico that oversees many laws on the imports and exports of products between these three nations. Buying and selling goods without taxes, fees or hindrances was conducted through this agreement. North American Free Trade Agreement is one of the most influential international agreement between these three countries that defined the economic, social and political development of the North American region. NAFTA is a fantastic deal for Canada since it opens doors and allows Canada to remain competitive on the world market, increases employment opportunities across Canada, and the elimination of tariffs decreases the price of consumer goods throughout

Read More

Mark Milke The Benefits Of Nafta

818 Words | 4 Pages

Both articles discuss what purpose The North American Free Trade Agreement (NAFTA) should serve. However, the authors have different views regarding NAFTA. I am analyzing the second article because I appreciate the way the author portrays NAFTA. The author, Mark Milke, focuses on the benefits of the free trade agreement by using normative, positive, and analytical statements. These statements help him further the case he is making in his article.

Read More

The Pros And Cons Of NAFTA

134 Words | 1 Pages

The North American Free Trade Agreement (NAFTA) is a free trade agreement between the three North American countries: Canada, United States, and Mexico. The agreement was signed by the presidents and prime minister in 1992, but it came into force by January 1, 1994 after being ratified by each nation’s legislative or parliamentary branch. The main goal of NAFTA was to eliminate trade and investment barriers, and its provisions were divided into four categories: intellectual property, environment, agriculture, and transportation infrastructure. Two decades after the signing, NAFTA has shown its significant impact on the economy of each North American nation. Proponents and critics have long been debating on the effects of NAFTA, and it becomes

Read More

Nafta Impact On Canada

1364 Words | 6 Pages

NAFTA is an agreement between Mexico, Canada, and the United States that came into effect on January 1st, 1994; this treaty held a lot of historical significance since it was a turning point for Canada’s development and for the prosperity they would face in the following decades. NAFTA stands for North American Free Trade Agreement; and as the name implies, it was a trade agreement that eliminated tariffs from being placed on imported and exported goods between the three countries. The origins of the treaty came from the FTA, which was another trade agreement established a few years prior on January 1st, 1989, between America and Canada. When the U.S. and Mexico were in negotiations of making a trade agreement similar to the FTA; Canada stepped

Read More

Canada To Decide On Potential Free Trade Agreement With China

600 Words | 3 Pages

The author talks about how Canada is trying to move on trade, with concerns arising on China free trade agreement and TPP coming to fall. Most of business

Read More

The Pros And Cons Of NAFTA

342 Words | 2 Pages

Since it’s beginning in 1994, the North American Free Trade Agreement has sought to reduce trade and investment barriers between the United States, Mexico and Canada. While NAFTA has been largely successful in facilitating free trade between the countries, it has been incredibly detrimental for U.S. employment and production. Ultimately, although NAFTA has caused the Mexican GDP to rise, it has significantly impaired economic expansion in the United States. As a result, it would be in the best interest of the United States to renegotiate the agreement with Mexico and Canada in order to prevent outsourcing and return jobs to the U.S. Out of the provided major provisions of NAFTA, the most negative are the reduced tariffs on automobiles and

Read More

The Defeat Of Hilary Clinton: A Branch Of The Study

1585 Words | 7 Pages

A particular World Trade Agreement that aids in trade and world relations is the North American Trade Organization. This trade agreement is composed of North America, Canada, and Mexico. To clarify, the of the primary goal of the North American Trade Agreement is to reduce trade barriers, encourage economic development, and

Read More

The Pros And Cons Of The TPP

1312 Words | 6 Pages

Thus, although Canada had to provide TPP members with susceptible access to it’s dairy sector, Canada fought against opposing countries demands, conceding to many request, yet also providing the farmers with financial support as a reparation. Canadian exporters will seize a competitive advantage to those countries that did not partake in the TPP. This will help the Canadian exporters as they won’t need to pay tariffs, like their rivals will. This is extremely vital for Canadian exporters, as China did not join the TPP negotiations, thus, leaving Japan (3rd ranked in GDP) with easier, and improved

Read More

Trans Pacific Partnership Essay

625 Words | 3 Pages

The Trans Pacific Partnership also known as TPP is one of the biggest economic stories in Canada today. Twelve countries around the world, including Canada, have struck a deal to create a free trade zone. This agreement will create the largest trade zone in the world, impacting 800 million people. These twelve countries make up 40% of the world’s economic output which is $28.5 trillion dollars. This agreement seeks to lower trade barriers such as tariffs and allow for increased trade in the zone.

Read More

The Pros And Cons Of NAFTA

3932 Words | 16 Pages

Benefits of NAFTA • Free trade increased sales in USA, Canada and Mexico for strengthening their

Read More

Advantages Of Nafta

732 Words | 3 Pages

NAFTA AND BUSINESS IN CANADA Merits and Demerits of NAFTA for Canada NAFTA (North American Free Trade Agreement) is an exchange agreement between Canada, Mexico and the United States that became effective in 1994 under President Bill Clinton. It essentially eliminated almost all tariffs among the three nations, allowing for the seamless flow of goods and supplies across borders. (Top of Trump's wish list is to renegotiate NAFTA)1. Everything has focal points and hindrances.

Read More

More about The Pros And Cons Of NAFTA

Related Topics

Open Document