Why Canada Entered Into Trade Agreement With United States

2276 Words Jul 8th, 2018 10 Pages
The term trade can defined as the movement of goods and consumables across the boundaries of the two regions in order to promote the access to items which are distinct in one region but surplus in the other. The international trade is as old as the history of mankind. Earlier when there was no concept of countries, the trade simply meant the movement of goods to far distant places. As soon as man realized that an access is needed to items that are not available in his region, he travelled and found them abroad. Now the difficulty was to gain control over those items while maintaining peace. This was how, the term barter and trade came into existence and people started to enter into agreements to transfer goods for goods or goods for money. …show more content…
The main reason for such a strong opposition was supported by the belief of the opposition that Canada will lose its internal autonomy and become one of the US’s "51st state". They also had the concern that such an agreement will demolish their personal interests with regard to the foreign policies and other existing trade agreements with other countries.
As every step taken by a government is to ensure the well being of its nation and the prosperity of the country, Canada was pushed by the same driving force to make a trade deal with US. Since the primary purpose and advantage offered by a free trade agreement is to exploit the no tariff trade, it was not the goal of Canadian government while seeking this agreement. The trade tariffs were already very low, around 1% of the total value of the trade, then a question arises that what Canadian government was aiming for.
It was the vast economy of the American market which was the target of Canadian government. Canada desired to get an unrestricted access to the vast economy of US. While on the other side, US were aiming to get cheap access to the cultural industries as well Energy sector of Canada. This is the basic essence of a trading relationship where the interests of every party is respected and agreed upon.
According to an estimate, almost 70% of the Canadian export takes place to US markets and similarly, almost 70% of its imports are from