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

Since the FTA had shown such great results for Canada as well as the US, the partnership then extended to mexico, further establishing bonds between Canada’s new trading partner. “ The NAFTA superseded the Canada-U.S. Free Trade Agreement (CUFTA), which had come into effect five years earlier on January 1, 1989. At that time, Canada and the United States signed an historic agreement that placed them at the forefront of trade liberalization.” (Government of Canada, Foreign Affairs Trade and Development Canada, Deputy Minister of Foreign Affairs, Assistant Deputy Minister Corporate Planning, Finance and Information Technology, Deputy Minister of International Trade, Area Management Office. Web.8 Dec. 2015) NAFTA was established only a short five years after the FTA was first signed, the effects from the FTA greatly encouraged NAFTA to then be established so close in time.

Read More

Close Relationships In Canada

956 Words | 4 Pages

In 2015, over 78% of Canadian exports were sent to NAFTA partners. It was inevitable that Canada would have to form some trade agreement with the United States, simply because of the fact that it is the only country Canada shares a border with, and it would only benefit both countries by forming some kind of trade agreement. With that, it connects to the

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

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

Relationship Between Brazil And Canada

1531 Words | 7 Pages

These countries had improved their business relationships through the last 10 years. Between these two countries was increased the goods and services flow. Nowadays, Brazil and Canada have strong trade relationships and the level of trade increased by 25% compared with 2007 (Piacitelli, M., 2016). However, both countries still have

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

The bloc has a combined GDP of more than $20 trillion. The trade among member countries represents 30.23% of total trade flows in the world. NAFTA trade amounted to $1.15 trillion as of 2015. It created five million new US jobs. Canada and Mexico invested $240.2 billion in the USA.

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

The Purpose Of NAFTA

614 Words | 3 Pages

• This article talked about Bill Clinton signing & the speech of the North American Free Trade Agreement (NAFTA). The main purpose of NAFTA was to create a free-trade zone (an area where goods can travel freely without paying important duties) including Canada, the United States, and Mexico (Voices of Freedom). In the speech on singing NAFTA Bill Clinton promoted the signing of NAFTA and asked Americans to accept globalization as an inventible form of progress. He also promised two main things. The first thing he promised was that this agreement was the path to future prosperity.

Read More

The Pros And Cons Of Free Trade

1718 Words | 7 Pages

It seems to work one way for the poor countries and another for the rich. It is quite clear that free trade benefits the consumer as prices of goods are lower due to cheaper imports without taxes on them. But it threatens on forms of local home grown business be it agriculture, clothing or technological and in these poor countries locals are forced out of their jobs due to the unwanted corporate

Read More

More about The Pros And Cons Of NAFTA

Related Topics

Open Document