Disadvantages Of Nafta

1435 Words6 Pages
1. Introduction
General discription of the assignment:
+ Canada is one top automobile exporter in the world with a strong history
+ USA is the largest and the most important market of Canada with a relationship and history between 2 countries. All most vehicles assembled in Canada is exported to US. And Canada also import a huge amount of automobile components from US.
+ Afer the industry crisis in 2008 and the effect of NAFTA, Canada automobile position and market share are losing to Mexico and other competitors. Canada is facing a trade deficit in automobile industry
+ However, automobile is the most significant industry in Canada that they are not allow to lose. Although the US market is becoming more competitive and there are lost of disadvantage
…show more content…
- Access to US market: According to World bank, “ Canada’s NAFTA advantage gives investors access to 470 million consumers”. “ Many Canadian production hubs are actually closer to U.S. markets than American production sites — of Canada’s 20 largest cities, 17 are within an hour-and-a-half drive of the U.S.”
- Developed technology and R&D support.
- Government supports: + Low tax “Canada’s overall marginal effective tax rate on business investment is by far the lowest in the G-7 — about 17 percentage points lower than that of the United States” Source: Department of Finance Canada. + Government policy: Canada’s government gives many benefits to automobile investors in the effort of maintaining the position and increase the competiveness of the country autos industry.
- Universal health care system: help to reduce the cost of health care and increase the performance and productivity of automobile workers.
- Rank 14th in the World Bank’s logistics performance index. This help to reduce the cost of transportation and optimize the automobile supply

More about Disadvantages Of Nafta

Get Access