Essays /

Canada S Part North American Free Trade Agreement Essay

Essay preview

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...

Read more


-1988 -1996 0.1 000 1 1.2 1.4 1.45 1.5 1.51 12.37 126 13 14 15 16 17.3 175 18.74 1867 19 19.2 194 1980 1980s 1984 1988 1989 1990 1990s 1991 1994 1996 1997 1998 1st 2 2.25 2.4 2.5 2.6 2.9 20 20.1 200 2000 2003 2008 22 23 25 25.8 276 29.3 292 3 3.2 30 31 32 33 36 4 4.1 4.3 4.5 40 44 45 47 5 5.95 52 543 588.7 6 6.6 60 64 7.1 80 83 9 9.6 9.7 abl access account achiev activ affect agre agreement agricultur agriculture-food alberta allow almost along also america american amount annoy annual anoth appeal applic approxim area around arrang ask attract author auto automot averag barrier becom besid better big biggest bill billion blackout border bottom brian britain british built bush busi came campbel can-usa canada canada-u canadian capit caus centuri certain chang chapter character charter chemic chretien chrëtien citi citizen clean clean-up clear climat clinton close closer closur cloth coal columbia come commerci compani compar comparison compens competit comput confisc conjur consider consum consumpt contin continu contract cooki cost cotton could countri cover cow cross cross-bord crucial crude dairi day deal decid declin decreas democrat depress design detail dickson differ difficult direct diseas dollar domest done drastic due duti earli earn easier econom economi economist egg eight eighti electr elig elimin employ employe end energi enforc engag engin enjoy ensur enter entrepreneur entri environ environment equip era ever everi evid evolv exampl execut expand export extens eye fabric factor fail famili family-own far farmer fell felt field financi first fish fit five fix flood floor flow focus food foreign forest fortin found free frozen fta gain gas gdp generat get go goal good govern grain great grew gross grow grown growth halberstadt handl hassl health high high-tech higher hire hollweck hour huge hype idea identifi iii illeg immedi immigr impact implement import imports/exports impos improv incom increas independ industri inflat influenc initi intent interest intern internet intra intra-compani invest investor iraq issu iv januari job join jr kdm keep kind known labor labour larg largest last late law layoff lead leav legal let level life lift like limit line live livestock locat long longest look lose loss lot low low-skil low-tech lower lowest machineri mad made main major make manag manageri mani manufactur market mean meant medic member merchandis merg met metal mexican mexico micro microwav mid mid-rang million mine minist money moran movement much mulroney multipli must nafta nation natur need never new next nich niche-ori non normal north number object obtain occup occur often one one-way ontario open opportun oppos organ orient otherwis own part particip partner past peanut peopl per percent period permit person perspect petroleum pierr plan plant play potenti poultri power pre pre-arrang presid prevent price primari prime problem produc product profess profession progress promis promot propos proud provid provinc public purchas put qualifi qualiti quebec quota rang rare rate re reach real realiz reason receiv recent refer regul relat relationship remain report requir resili resolv resourc rest restrict return rollercoast rose run safeti sale salina scenario seafood second sector secur seen self sell sens serv servic seven sever short short-term sign signific sinc sizabl size skill slight slow slower slowli slump small societi softwood sold south southern special specialti specif specifi spend spring stabl stalk state stay steadi steel still stop strong success sugar support suspicion taken tariff tax tech technolog telecommun temporari tend term thing third three throughout time today togeth toll ton top total toward trade trader transfere transit transpar transport tri truck true turn two u u.s unemploy unit upon urban us usa use v valu varieti vast ve view vii viii visa visitor wage want war way well western wheat whole will wise wish within without wood work worker world worth would year young zahnis zero