Canada has changed drastically to become the nation it is today. Evolving from a young country, Canada today is viewed as a democratic and proud nation. After Canada received its independency from Britain in 1867 it has progressed into a wise nation that has slowly related it self to the United States of America. The USA has many things that Canada needs to import and the United States ask for the same in return. In the 20 century trade is seen as a growth in a country's economy. This is why Canadian Prime Minister; Brian Mulroney, agreed to a free trade contract with the United States on January 1st 1988. Many Canadians had different views and perspectives on how this contract would turn out. Free trade meant that there would be elimination on most barriers between the two nations, allowing access to each country's goods. As the hype grew Mexico decided to join in this economic growth factor. On January 1st 1994 the Free Trade Agreement was expanded and built upon to produce the North America Free Trade Agreement (NAFTA), This agreement will continue to change the life of many people until January 1st 2008. It was as if the three countries were merging together into an economically powerful nation in a sense of goods. Mexican President Salinas, the US President Clinton and Prime Minister Chretien all felt this would be successful in the years to come. NAFTA's promoters promised 200,000 new jobs per year for Canada, higher wages in Mexico and growing trade between Mexico and Canada. Environmental clean-up and improved health along the border were also promised. In the area of the economy, imports/exports, and businesses The North American Free Trade Agreement had and still has a significant impact on Canada since 1988.
The North American Free Trade had several impacts in the economy, of Canada, The United States of America, and Mexico. Each country signed the agreement for a certain reason. Canada wanted to gain access for Canadian goods, service and capital to Mexico, as well as to resolve specific annoyances with the United States from the Free Trade Agreement (FTA), and lastly to ensure that Canada remained an attractive location for investors wishing to serve the whole market in North America. (Government, IV) Most of these objectives have been met so far.
The economy of Canada changed vastly due to NAFTA. A closer relationship between the three countries was achieved in comparison to the rest of the world. Since the Free Trade Agreement, The United States had the largest foreign investment in Canada with 64%. By the end of 2000 $126 billion dollars was invested in Canada from the United States, an increase of $15 billion from 1984. (Government, III, and IV) This increase in investment came from a variety of things like petroleum, and transportation equipment to manufacturing industries.
Another object that increased the flow of money coming into Canada was the Canadian dollar. It initially rose 4.1% from 1989 to 1991. "My suspicion is that the Canadian dollar was part of the (free trade) deal", state Dickson.(Halberstadt, 9). From 1989 to 1994 Canada was able to keep a 2.25% short term interest rate above the US (Zahniser, V). The total market value of all the goods and services produced within the borders of a nation during a specified period is known as the Gross Domestic Produc...