Disadvantages Of NAFTA In Canada

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In January 1994, Canada, the United States and Mexico launched the North American Free Trade Agreement (NAFTA) and formed the world's largest free trade region. Canada’s goal for signing the agreement was simple: the agreement was to pave a road for Canada that expanded its trading field while providing a larger stage on which to demonstrate its economic expertise and leadership. The point in focus now is whether or not Canada has benefited from this agreement. Under NAFTA many sectors of the economy have been affected. These mainly include the agricultural, manufacturing and telecommunication sectors of the Canadian economy. On the opposite side of the scale there are disadvantages as well that come along with joining NAFTA which include…show more content…
They wanted to advance their access for goods and services to Mexico and the United States. Canada wanted to guarantee its position as a prime location for investors seeking to serve all of North America. The NAFTA deal has realized these objectives set by Canada and will supply Canada with a new and sharper edge as a player in the international playing field. One advantage for Canada is that the reduction of Mexican barriers will provide new markets and opportunities for Canadian goods and services. Canadian firms will be able to participate in, and expand sales in, sectors that were previously highly restricted, such as autos, financial services, trucking, energy and fisheries. Mexican tariffs and import licensing requirements will be eliminated, some immediately and others over a five to ten year period - providing barrier free access to 85 million consumers. NAFTA practically envelops every field of business in Canada and provides many provisions as well as both real and potential advantages to Canadians in all most all places in the work place. Agriculture products play a significant role in Canada's exports to other countries. Canada has first-rate fertile farming land that has produced great results as well as superior livestock and excellent crops that have contributed to productive and flourishing trade of their agricultural products and services. Canada's total exports surpass $13…show more content…
One disadvantage of NAFTA is the loss of manufacturing jobs which would occur from the shift of multinational corporations to Mexico. The relocation of plants by many corporations to head south of the border into Mexico comes about because of the lower cost of production. This is because Mexico has cheaper unskilled labor due to non-existent minimum wage rates. In almost every case money usually leads the way. With respect to NAFTA, the shift is to Mexico. With this movement of multinational corporations to Mexico, the rate of unemployment will fall there but will rise in Canada. A rise in unemployment for Canada is not a good thing especially with the situation that has already plagued us. From a Canadian business point of view however, it is feasible for corporations to produce goods and services where labour costs are cheaper and their total costs of production are lower. Meanwhile, this short

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