The 1988 Free Trade Agreement

Furthermore, Canada remaining under the archaic British North America Act and not drafting its own constitution meant that the composition of the nation and the government was in the hands of the British Parliament, which denies the Canadians the luxury of dictating the structure and make-up of their own country. Now, one may say that Canada weakened its economic ties with Britain and was therefore no longer economically dependent on them, but the fact of the matter is that all we did was shift our dependence onto another nation, the United States. By 1926, America’s yearly investment in the Canadian economy had risen up to $3400 million (as opposed to $2000 million in 1920) mainly in the exporting of Canadian resources to the United States. In addition to that, American companies built “branch plants”, which were made to avoid having to pay trade tariffs, making this a pretty one-sided trade

A majority Government passed the bill of free trade with US and later with Mexico, which called NAFTA. To change public opinion about the ferocious act of Free Trade, the Government justified it with statistical data of increasing trade (Policy and Partisanship). Hundreds and thousands of big companies left Canada and set up in states or Mexico. It was big economic fiasco in those years. The Government imposed GST to recover the losses because of NAFTA. Unemployment rate in Most of the provinces increased to the alarming level. In Flint, a city of auto plants faced major economic and social upheavals.

Since the country’s conception in 1867, Canada has lived in the shadow of it’s southerly neighbour, the United States of America. Through the years, what started out as a country with very distinct culture has morphed and become Americanized. Historically speaking, American influence has had a great economical impact on Canada. Speaking about the Americanization of Canada, Pierre Trudeau, former Prime Minister of Canada, has said, “Americans should never underestimate the constant pressure on Canada which the mere presence of the United states has produced…” This pressure has changed the way Canadians live and conduct business. This pressure has Americanized the Canadian economy. American culture has a very far reaching effect on Canada with many trickle down effects. Americanization of the Canadian economy has lead to the American control of the Canada’s corporate structure, Canadian dependence on American capital, turned the Canadian economy into a mirror image of the American economy, and has led to loss of

As Mulroney came to office in 1985, he dismantled the FIRA and replaced it with Investment Canada, a new system which he believed would encourage suitable foreign investment. FIRA was criticized by those who concerned about American economic influence, since it almost approved every application it received. At the time, in some industries, such as the petroleum and rubber products industries, foreign control exceeded ninety per cent. Over three-fourths of this control was held by United Sates investors.6 These new and old policies brought better and higher rate of business income between Canada and the United Sates, which resulted in closer ties between the two countries.

Canada experienced several internal and external changes during the time period of 1945-1982; these changes were political, social and cultural. Firstly, a major internal political change occurred when Prime Minister John Diefenbaker introduced the first Bill of Rights to protect people’s equality before and under the law. A significant external political change occurred when the Canadian government signed the Autopact, which was a Canada-U.S. automotive products agreement that included conditional free-trade, creating a single North American market for automobiles and car parts. This agreement caused a huge shift in car sales and by 1968 40% of cars purchased in Canada were made in the U.S. An additional internal political change of major

First of all, the introduction of Goods and Services Tax by Mulroney built the foundation for eliminating federal deficit, which occurs when the government spends more money than it makes (Parker 22). Deficit increased the selling off of the capital assets in Canada to finance the purchases of slowly diminishing goods and services, which undermined future production and raised unemployment rates and inflation (Swatsky 309). Not only did the introduction of GST overcame deficit by a significant amount, it also proved to be an important source of generating revenues, improving the competitive position of Canada’s economy in the world and acting as an efficient way for managing the country (Good and Bad sides of GST). This could be justified though the fact that when Mulroney introduced the GST, the revenues grew by one-third, and GDP by 1.2%. Although it was not enough to stop deficit at first, it did slow it down and eventually hauled it (Coyne). But at the same time, his attempt to stop deficit limited his ability to deliver the promises he made in terms of services and infrastructures.(Info base Learning). Secondly, the signing off the Free Trade Agreement with United States and North American Free Trade Agreement with the addition of Mexico came as a great economic contribution to Canadian history as it marked the creation of the largest free trade region in the world. With the elimination of tariff and non-tariff barriers, NAFTA opened gates for Canada towards economic prosperity and growth. With no imposed taxes, NAFTA provided Canada access to the wider range of Mexican and U.S markets, expanding Canada’s productivity and allowed Canada to attract more U.S investors, firms and companies to Canada, to invest in the wide variety of natural resources, and. This also led to a huge burst in job opportunities in the trade and service sectors (Ties with

A survey published in 1982 by the Foreign Affairs Committee, stated that “relations between the U.S. and Canada have become more strained that at any time in recent memory”. Over the course of Pierre Trudeau’s last term in office, the temperature of Canada’s most important foreign relationship had plunged from chilly to icy. This deep freeze inflicted real costs on Canadians. By 1984, the terms of trade were turning against Canadian raw-materials exports, and Canadian manufacturers faced an intensifying threat of protectionism in Congress. With Centre-right governments in power in Washington, London and Bonn, Canada found itself isolated, its interest disregarded, its opinions openly scoffed at. The U.S. saw the Trudeau “peace initiative” as the “pot-induced behavior of an erratic leftist”. Brian Mulroney set himself to restore Canada’s reputation as a respected and reliable partner. He succeeded---and then

The national policy greatly helped him win the election of 1878. The national policy used high Tariffs which is a tax or duty put on goods and products leaving or entering a country. There was a Triff put in place while Alexander Mackenzie was Prime Minister but it was quite lower, it was raised when Macdonald instituted the policy. The intent of the policy was that the higher tariffs would expand the Canadian economy and increase the confidence of Canada as they were developing as a country. Overall the tariffs were raised to further discourage the american competition except the tariffs were a bit lower on raw materials and other products so that helped to lower costs of production of products in Canada. The national policy was associated with the Canadian Pacific Railway, Dominion lands act and the harbour development because of the National policies development strategies and rhetoric speaking. The National Policy begun to lose momentum in the 1940’s and 1950’s under Prime Minister's Louis St. Laurent and Mackenzie King. After WWII the canadian and US economies integrated meaning they combined and with the signing of the Auto Pact in 1867 (which was a free trade agreement for automobiles) and it marked a growing milestone for economic unification. Again in 1989 another free trade agreement was signed between Canada and the

With a population of over 30 million Canada is one of the world’s largest and strongest economies. Canada has a highly educated skilled labor force and a reputation as a successful trading nation. In the past 20 years Canada’s Economy has only had a negative outcome twice. Canada is known as a mixed economy, and it is one of the suppliers of the agricultural products in the world. The economy is open to global commerce and supported by a high degree of regulatory efficiency. Trade is important to Canada’s economy, the value of exports and imports taken together equals 65 percent of Gross Domestic Product. Free trade is embraced in Canada because both business and consumers get great exposure to economic and social prosperity. In Canada there are 3 levels of government, each level has different responsibilities. Federal Government is responsible for things that affect the whole country,

The period following the Second World War was a time of exceptional growth and prosperity in Canada. The establishment of the great-post war compromise and entrenchment of Keynesianism into economic policy facilitated the advent of a high wage, high consumption economy, a robust welfare state, labour peace, and a strong unionization rate. However, this “Golden Age” of capitalism was interrupted in the early 1970s, as Canada, along with other advanced economies, experienced economic downturns. The economic crises of the 1970s led to a massive restructuring of the economy, and ultimately, broke down the post-war comprise that had sustained relations between labour, business, and the state for over 20 years.

The National Policy is an economic improvement program created by John A. MacDonald. Studies show that the purpose of the National Policy is to attract migrants, protect products through tariffs and build stronger national transportation systems. There are two objectives that the National Policy holds: raise tariff ad duties for bringing products into the United States and replacing east/west trade across Canada. First, the items are produced in industries from the east, then they are sent and sold to the west. MacDonald wanted to use every opportunity to help Canadian industries earn multiple benefits. He also attempted to reduce Canadian’s dependence on United States economically and politically. After four long years of depression, he developed

As the 20th century comes to an end, Canada is a transcontinental nation whose interests and representatives span the face of the globe and extend into every sphere of human behaviour. However this was not always the case. When the four colonies of British North America united to create Canada on July 1, 1867, the new country's future was by no means secure. Canada was a small country, with unsettled borders, vast empty spaces, and a large powerful neighbour, the United States. Confronting these challenges was difficult for the young country. Though Canada was independent in domestic matters, Britain retained control over its foreign policy. Over the next fifty or so years, Canada's leaders and its

Developing countries tend to be located in the global south wile developed countries are located in the global north. In the 1980s neoliberalism took full swing and focused on an open economic market, and the creation of institutions. It created the Bretton Woods institutions in order to spread American values and promote economic growth through privatization of state owned enterprises. “The last 25 years has seen the most rapid, and most broad-based, growth in developing countries, ever” (Dervis, Kharas). Globalization has facilitated the spread of neoliberal ideology across the globe through an economic international trading system. For example, the North American Free Trade Agreement (NAFTA) with regional partners, such as Mexico, promoted an open approach to the economy and provided important benefits for both countries. Another example, was the creation of the World Trade Organization (WTO) that includes over a hundred countries.

It is commonly believed that free trade between nations is a mutually beneficial arrangement for all parties involved; indeed, this is held to be an absolute truth. Though free trade is undoubtedly the most effective form of commerce between countries from a purely economic standpoint, increasingly we find that our so-called "free trade agreements" are horribly unbalanced. Indicative of these fiascoes is the North American

Over the years, there have been mixed views regarding the proposed Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada. It is essentially the first trade agreement between the EU and a major world economy. Some argue that it is also the most far-reaching bilateral trade agreement negotiated to date (Engardio, 2008). In general, the agreement addresses a wide range of issues at the Canadian federal and provincial level that affect European exports of goods and services to Canada. This paper will discuss some of the main arguments brought forward by advocates and critics of CETA, examine the type of actors who have taken a stand on the agreement, and finally analyze the differences between the European