Essays /

Canada Part Of Nafta Essay

Essay preview

Canada part of NAFTA
1.INTRODUCTION
The North American Free Trade Agreement (NAFTA) is an agreement signed byCanada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada–United States Free Trade Agreement between the U.S. and Canada. In terms of combinedpurchasing power parity GDP of its members, as of 2007 the trade bloc is the largest in the world and second largest by nominal GDP comparison. NAFTA has two supplements: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC). The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas, and U.S. President George H.W. Bush, came into effect on January 1, 1994. Since 1993, NAFTA has generated economic growth and rising standards of living for the people of all three member countries. By strengthening the rules and procedures governing trade and investment throughout the continent, NAFTA has proved to be a solid foundation for building Canada’s future prosperity. Canada's merchandise trade with its NAFTA partners reached nearly $626.3 billion in 2008. Canadian merchandise exports to the United States grew at a compounded annual rate of almost 6.3% between 1993 and 2008. Canada’s bilateral trade with Mexico was close to $23.8 billion in 2008. Approximately eighty percent of Canada’s total merchandise exports were destined to our NAFTA partners in 2008. Total merchandise trade between Canada and the United States more than doubled between 1993 and 2008. Trade between Canada and Mexico has more than quadrupled over the same period. Trade in services has also increased under NAFTA. Canada's trade in services with the United States and Mexico grew has doubled from $42.9 billion in 1993 to $86.5 billion in 2005. Our trade in services with the United States reached $91.3 billion in 2008, up from $42.3 billion in 1993. Two-way trade in services between Canada and Mexico reached $1.8 billion in 2006. In turn, the enhanced economic activity and production in the region have contributed to the creation of jobs for Canadians. One in five jobs in Canada is related in part to trade. More than 4.3 million net new jobs have been created in Canada between 1993 and 2008. For Canadians, it is important that trade and investment liberalization proceed hand in hand with efforts to protect the environment and improve working conditions. Under NAFTA, our three countries have been able to introduce the successful approach of parallel environmental and labour cooperation agreements. The economic collaboration promoted by NAFTA has spurred better environmental performance across the region. Through the North American Agreement on Environmental Cooperation, the three partners agreed to promote the effective enforcement of environmental laws. Through the North American Agreement on Labour Cooperation, the three partners agreed to work together to protect, enhance and enforce basic workers’ rights. A strong, modern and flexible NAFTA is important for the continent to maintain its competitiveness in an increasingly complex and connected global marketsplace. Canada and its NAFTA partners will continue to work together to reduce the costs of trading within the region and to improve the competitiveness of North America.

2.ECONOMY OF CANADA
Canada has the eleventh-largest economy in the world (measured in US dollars at market exchange rates), is one of the world's wealthiest nations, and is a member of the Organization for Economic Co-operation and Development (OECD) andGroup of Eight (G8). As with other developed nations, the Canadian economy is dominated by the service industry, which employs about three quarters ofCanadians. Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. Canada also has a sizable manufacturing sector, centred in Central Canada, with the automobile industry and aircraft industry especially important. With a long coastal line, Canada has the 8th largest commercial fishing and seafood industry in the world. The economy of Canada is one of the global leaders of the Entertainment Software Industry.  Canada has one of the highest levels of economic freedom in the world. Today Canada closely resembles the U.S. in its market-oriented economic system and pattern of production. As of February 2013, Canada's national unemployment rate stood at 7.0%,as the economy continues its recovery from the effects of the 2007-2010 global financial crisis. In May 2010, provincial unemployment rates varied from a low of 5.0% in Saskatchewan to a high of 13.8% in Newfoundland and Labrador. According to the Forbes Global 2000 list of the world's largest companies in 2008, Canada had 69 companies in the list, ranking 5th next to France. International trade makes up a large part of the Canadian economy, particularly of its natural resources. In 2009, agricultural, energy, forestry and mining exports accounted for about 58% of Canada's total exports.[21] Machinery, equipment, automotive products and other manufactures accounted for a further 38% of exports in 2009.[21] In 2009, exports accounted for approximately 30% of Canada's GDP. The United States is by far its largest trading partner, accounting for about 73% of exports and 63% of imports as of 2009.[22] Canada's combined exports and imports ranked 8th among all nations in 2006. Canada has considerable natural resources spread across its varied regions. As an example, in British Columbia the forestry industry is of great importance, while the oil and gas industry is important in Alberta, Saskatchewan and Newfoundland and Labrador. Mining is the principal industry of Northern Ontario, while fishing has long been central to the character of the Atlantic provinces, though it has recently been in steep decline. Canada has mineral resources of coal, copper, iron ore, and gold. These primary industries are increasingly becoming less important to the overall economy. Only some 4% of Canadians are employed in these fields, and they account for 6.2% of GDP.[24] They are still paramount in many parts of the country. Many, if not most, towns in northern Canada, where agriculture is difficult, exist because of a nearby mine or source of timber. Canada is a world leader in the production of many natural resources such as gold, nickel, uranium, diamondsand lead. Several of Canada's largest companies are based in natural resource industries, such as EnCana, Cameco, Goldcorp, and Barrick Gold. The vast majority of these products are exported, mainly to the United States. There are also many secondary and service industries that are directly linked to primary ones. For instance one of Canada's largest manufacturing industries is the pulp and paper sector, which is directly linked to the logging industry. The reliance on natural resources has several effects on the Canadian economy and Canadian society. While manufacturing and service industries are easy to standardize, natural resources vary greatly by region. This ensures that differing economic structures developed in each region of Canada, contributing to Canada's strong regionalism. At the same time the vast majority of these resources are exported, integrating Canada closely into the international economy. Howlett and Ramesh argue that the inherent instability of such industries also contributes to greater government intervention in the economy, to reduce the social impact of market changes. Such industries also raise important questions of sustainability. Despite many decades as a leading producer, there is little risk of depletion. Large discoveries continue to be made, such as the massive nickel find at Voisey's Bay. Moreover the far north remains largely undeveloped as producers await higher prices or new technologies as many operations in this region are not yet cost effective. In recent decades Canadians have become less willing to accept the environmental destruction associated with exploiting natural resources. High wages and Aboriginal land claims have also curbed expansion. Instead many Canadian companies have focused their exploration and expansion activities overseas where prices are lower and governments more accommodating. Canadian companies are increasingly playing important roles in Latin America, Southeast Asia, and Africa. The exploitation of renewable resources have raised concerns in recent years. After decades of escalating overexploitation the cod fishery all but collapsed in the 1990s, and the Pacific salmon industry also suffered greatly. The logging industry, after many years of activism, has in recent years moved to a more sustainable model.

3.HISORY AND PURPOSE OF NAFTA
NAFTA is short for the North American Free Trade Agreement. NAFTA covers Canada, the U.S. and Mexico making it the world’s largest free trade area (in terms of GDP). NAFTA was launched 20 years ago to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace. All tariffs between the three countries were eliminated in January 2008. Between 1993-2009, trade tripled from $297 billion to $1.6 trillion.

When Was NAFTA Started?
NAFTA was signed by President George H.W. Bush, Mexican President Salinas, and Canadian Prime Minister Brian Mulroney in 1992. It was ratified by the legislatures of the three countries in 1993. The U.S. House of Representatives approved it by 234 to 200 on November 17, 1993. The U.S. Senate approved it by 60 to 38 on November 20, three days later. NAFTA was signed into law by President Bill Clinton on December 8, 1993 and entered force January 1, 1994. Althou...

Read more

Keywords

-1 -1994 -200 -2009 -2010 -38 -94 000 1 1.3 1.6 1.7 1.8 1.introduction 10 10.advantages 102 105 106.8 11 11.disadvantages 116 116.2 12 13 13.2 13.8 132 136 14 140 142 15 15.5 151 156 157.8 16 16.5 17 1981 1984 1985 1986 1988 1989 1990 1990s 1991 1992 1993 1994 1995 1996 1999 2 2.economy 20 200 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 2010 2011 2012 2013 21 213 219 219.2 22 23 23.8 234 237.2 24 245.1 247 25 250 26.8 27 28.3 28.9 29 29.8 293 297 2nd 3 3.hisory 30 300 321 327.5 33 33.2 34 348.7 35 357 36 36.4 38 381.3 397 4 4.3 4.nafta 40 400 401 405 42.3 42.9 438 452 47 5 5.0 5.negotiation 50 52 568 58 59.5 5th 6 6.2 6.3 6.9 6.provisions 60 61 626.3 63 63.5 630 633 64 65 66.7 682 69 7.0 7.mechanisms 72 73 73.6 8 8.8 8.criticism 80 830 841 86.5 880 8th 9 9.4 9.canada 900 904 91.3 933 94.6 95 97.2 98 abil abl abolish aborigin abrog accept access accommod accord account achiev acommod across acryl act activ actual ad addendum addit address adher adjust administr admiss admit adopt affect afford africa agenc ago agre agreed-upon agreement agribusi agricultur air aircraft ait aka alberta allay alleg allevi allianc allow almost alon along alreadi also although ambassador amend america american among analysi andelectr andgroup annex annual anoth anti anti-dump anti-fre antonio anyth anyway appeal appendix appl appli applianc applic approach approv approxim april arbitr area aren argu arriv articl ash asia assembl assess associ atlant attack august author automat automobil automot avail aviat await b back balanc ban banana bank barack barbara bargain barrick barrier base basi basic bay bean becam becom beef began begin believ belt benefici benefit better beyond bid biggest bilater bill billion billioncad blame bloc bodi book boost border border-st bottom boundari branch brian bridg british brought build bulk bush busi buy bycanada c california call came cameco campaign campbel canada canada-u canada-us canadian canadianecosystem candid cannot capita care caribbean carlo carnegi carri case catalyst caus cec centr central ceremoni certain certainti chang chapter charact charg cheap cheaper cheapli chemic china chocol choic chose chrétien cite citizen ciudad claim claus clear clinton close co co-oper coal coastal cocoa cod code coincid collabor collaps collect columbia combin combinedpurchas come commerci commiss commod common compani compar comparison compet competit complex compon compound compromis comput concentr concern conclus condit conduct confirm congress congression connect consecut conserv consid consider consist consult consum consumpt contain contin continent continu contract contrari contribut control controversi converg cooper copper copyright cork corn corpor cost could count countervail countri cours court cover coyl cranberri creat creation credit crisi critic cross cross-bord cultur curb currenc current custom dairi damag danger data date day dear debat decad decemb decim decis declin decreas deficit deforest demand demarc democrat demonstr depart depend deplet descript design despit destin destroy destruct deter deterior determin develop dhs diamondsand didn differ difficult diplomat direct disadvantag disagre disappoint disapprov discourag discoveri discrep discuss displac disput divis dollar domain domest domin done door dot doubl downstream downward dramat drastic drive drop due dump duti earlier earliest easi easili east econom economi economist educ effect effici effort egg eight eighti either elain elect electr eleventh eleventh-largest elimin eliminatestariff elit embrac emerg emigr emin emiss emot employ enact encana end endow energi enforc enhanc enough ensur enter entertain entitl entrant entri environ environment equal equip escal especi establish estat estim ethanol eu european evalu even ever evid ex exampl except exchang exclus exhaust exist expand expans expect expens expert expir exploit explor export expos exposur expropri extend extern facil facilit fact factori fail fair fall fall-out famili famous far farm farmer fast fast-track favor fdi fear feather februari feder fertil fibr field fifth fifth-largest file fill final financ finance/insurance financi find firm first fiscal fish fisheri five flag flexibl flow focus follow food forb forc foreign foremost foreshadow forest forestri form former forum fought found foundat four fourth fox framework franc free freedom freeli fresh friend fruit fta fuel fulfil fulli furnitur futur g8 gas gasolin gave gdp generat georg giant given glass glasswar global go goal gold goldcorp gone good good-pay gottlieb govern gradual grain grant great greater grew grid groceri grow grown growth guarante gulf h h.w half halt hand happen hardest harmon harper hasn hazard health hear heavier hectar held help henc hidden high high-cost higher higher-margin highest highway hillari hit hold homeland hope hour hous howev howlett hs hufbauer hurdl hurtig hydropow hypothes i.e illeg immedi immigr impact imped impetus implement impli import impos imposit imposs improv inc incid includ incom increas independ industri inequ inflat infrastructur inher initi injuri innov instabl instanc instead institut instrument insur integr intellectu intent intern intervent introduc invest investor involv iran iron irrit issu januari japan jean job john join journal juic juli june justic juárez k keep key kim kind kojadinović labor labour labrador lake land landmark larg larger largest last later latest latin launch law lawmak lawrenc lead leader leather leav led legal legisl legislatur less lesson level levi león liber lifton like limit line link list littl live load local log logic long long-stand longer lose loss lost low low-cost lower lower-cost lumber machineri made magazin main maintain major make mandat mani manufactur manufacturingindustri maquiladora maquiladora-bord margin marin market market-ori marketplac marketsplac marri marvin massiv materi matter may mccain meal mean meanwhil measur measures.the meat mechan mel member merchandis met metal metropolitan mexican mexico michigan middl mile million mine miner minim minist miodrag mmt mobil model modern modest month moreov motion motor move movement much mulroney multilater must myth naaec naalc nafta nafta-rel naftat nation natur near nearbi necessari need negat neglect negoti neighbour nerv net never new newfoundland newsprint next nick nickel nomin nomine non non-bord non-immigr non-memb non-nafta non-tariff nonbank none north northern notic novemb number numer obama occasion occur ocean octob oecd ofcanadian offic offici often oil one one-half one-third ongo ontario open oper opportun oppos opposit order ore organ orient origin other outlin overal overexploit oversea overwhelm own owner pacif pact pair panel paper parallel paramount pariti parliament parliamentari part parti particular partner pass passag pattern paul pay pc pcs peopl per percent perform period perot person perspect petroleum phase phase-in phase-out phenomenon pictur plant play player pledg point polici pollut poor popul popular portion portman posit possibl postenvironment postframework poultri pour poverti power practic pre predict preferenti pregnanc prepar present presid presidenti pressur prevent previous price primari primarili prime princip prior prioriti pro pro-fre problem procedur proceed process procur produc product product-specif profession profit program prohibit project promis promot properti propos prosper protect prove provid provinc provinci provis public publish puebla pull pulp purpos purview put quadrupl quantifi quantiti quarter question quota race railroad rais ramesh ran rank rapid rate ratif ratifi raw re reach reagan real realiti receiv recent recess reciproc record recoveri reduc referr reflect region regul relat relationship relianc remain remov renegoti renew repeal replac report repres republican request requir research resembl resolut resolv resourc respect respond respons rest restor restrict result retain return review revisit reynosa rice right rise risk river road rob role ron ronald ross round rule rural safeti said sale salina salmon san santa saskatchewan saw say scale scrambl sea seafood seat seaway second secondari section sector secur seek seen sell senat send sent separ septemb serious serv servic set settl settlement sever shale share shock short short-suppli show side sign signatori signific similar sinc singl situat six sizabl size slag small small-key smeltingindustri smooth so-cal social societi softwar softwood sold solid someth sought sound sourc south southeast soybean spearhead specif split spokesman spread spur st stabl stand standard stapl start state statist status statusto steadi steep step stephen still stock stood stop strategi strengthen stretch strict strong structur studi subject submit subsequ subsid subsidi substanti success suck suffer suffici sugar suggest sun superhighway supersed supplement suppli supplier support suppress surplus suspend sustain sweeten symposia system systemat take taken takeov tanker tariff tariff-fre tax taxat td technolog televis temporari term termin territori test texa textil thank third third-countri though thousand threat threaten three three-year throughout thursday thus tijuana timber time tn today togeth toluca top topic tortilla total toward town track trade tradeprogress traffic transfer transpar transport travel treati treatment trend trilater trillion tripl truck trucker true trust turn twice two two-third two-way u u.s undergon undevelop unemploy unfair unfortun union unit unlik unlimit unprepar unresolv unusu updat upon uranium uruguay us usa use usual valid valu value-ad vanish vari various vast veget vehicl venezuela ventur vicent vigor violat vis vis-à-vi visit voisey vote w wage wake want warn water wave way wealthiest weight welfar well went western wherea whether wholesal whop whose wider wild will within without woman won work workday worker world worldpress.org would wouldn written wto year yearbook yet york yu yucatán yukon zahnis zone à