Impact Of NAFTA On Canada's Economy


Canada and the United States have had a long-standing friendship in which the two nations live peacefully side-by-side. The borders are not armed, the residents of each nation have respect for the other and there are many advantages enjoyed by remaining friendly. Just as any two friends will have disagreements from time to time, Canada and the US have also had their share of problems. One of the problems that has occurred from time to time between the two nations deals with the economics of each nation. NAFTA, which is a membership group designed to promote and improve trade relations within the member nations is sometimes called in to mediate between Canada and the US. ...

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by allowing certain equalizing tariffs much in the same way racing cars qualify for starting position in a race.
The trade disputes between the two countries have been mediated and settled through use of the arbitration panel that was established under the North American Free Trade Agreement (NAFTA) with varying results and outcomes. For the most part the NAFTA agreements and rules have been favorable for the economy of Canada(Trade, 1996). One example of such profit allowing decisions was reached in 1996 when Canada and the US had a dispute about Canada's marketing boards that regulate prices for eggs, dairy products and chickens. The US fought the ability for Canada to maintain the regulations stating it would cost the US about $1.billon dollars, but the mediating panel of NAFTA ruled Canada was within its rights to use its marketing board. The NAFTA ruling in Canada's favor provided continued revenue for the Canadian economy.
"U.S. dairy, poultry, egg and barley interests ...

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governments were left to argue out the situation and try and resolve it. The NAFTA implementation gave each nation an avenue to pursue complaints in the trade transactions. Canada's economy has improved because of NAFTA because it has placed rules and trade agreements in place that all members have agreed to abide by. This eliminates many possible disagreements that would occur without the prearranged agreement(Launches, 2002).
Since the inception and implementation of NAFTA Canada has had a recourse if it did not agree with a decision being made by the other members. In addition to allowing Canada to proceed with its own trade actions it also protects Canada from being subjected to ...

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Impact Of NAFTA On Canada's Economy. (2015, August 9). Retrieved August 9, 2020, from
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"Impact Of NAFTA On Canada's Economy." August 9, 2015. Accessed August 9, 2020.
"Impact Of NAFTA On Canada's Economy." August 9, 2015. Accessed August 9, 2020.
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Added: 8/9/2015 04:53:35 AM
Category: Economics
Type: Premium Paper
Words: 5369
Pages: 20

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