Nafta, Ceta and Tpp

An influential business mogul named Prem Watsa had once stated that; “free trade is not an agreement, it is a principle that must be inherited by all great leaders”. Although Canada was only introduced to the concept of free trade later than other countries, it has proven to be extremely beneficial to both itself and their partners. The Canadian Government’s utilization of free trade through various agreements such as NAFTA, CETA and TPP effectively portrays the positive impact of this concept on the Canadian economy.

Due to the fact that NAFTA was the first and only agreement between the three membering nations of North America, it has had an exceptional impact on the economies of these countries. According to a certified Canadian Statistic Webpage, Canada’s employment rate experienced an approximate 7% increase immediately after the NAFTA agreement was signed and has stabilized since. An increase in employees ultimately affects a country's economy in a positive manner. Prior to the NAFTA agreement, Canadian employment rates were experiencing a stagnation which ultimately portrays a less established economy yet this was drastically altered in 1993, when NAFTA was created. Many individuals utilized the proximity of the three countries to their advantage and seeked for employment in different areas of North America which had much more room for growth and development. Canada’s automotive industry witnessed a tremendous repercussion when the agreement was passed, many workers who were willing to take part in manual labour travelled from Mexico to Canada which completely redeveloped this industry to be one of the more prestigious ones within Canada. In addition to NAFTA’s contribution to employment rates, this agreement has also proven to benefit Canada’s economy through consumer prices for goods. Based on a scholarly article regarding trends in the Canadian Consumer Pricing Index, free trade agreements such as NAFTA have contributed to the decrease in prices of consumer goods. NAFTA completely banishes all tariffs which allows companies to both purchase and sell goods for less. All businesses within Canada have the ability to produce their goods in cheaper conditions which lowers production costs and increases their profitability ratios. When consumers purchase more goods, the economy increases and NAFTA has clearly assisted in lowering consumer prices to increase their consumption which has played a huge role in Canada’s well established economy. Another factor of NAFTA that intensely boosts Canada’s economy is the protection this agreement provides to all North American investors. According to a certified website regarding NAFTA, this agreement has ensured an immense amount of protection for both foreign and domestic investors. With the help of NAFTA, all citizens of North America can invest in any North American market without the hassle of facing the consequences of being non local investors. The United States of America’s stock market is known to be one of the finest stock markets in the entire world. Since the signing of the NAFTA agreement, the US has experienced an approximate 0.5% annual increase in potential trade areas which means there has been an overflow of investors who have been steadily increasing the amount of investments made within North America. When Canadians invest, they use the Canadian currency which ultimately causes economic growth because the economy benefits from any form of spending. Overall, it is evident that the NAFTA agreement has been extremely profitable for the Canadian economy.

The Comprehensive Economic and Trade agreement (CETA) is a free trade agreement between Canada and the European Union which has enforced an economic growth for the union. A major factor of Canadian economic growth which is created from the CETA is the pleasing business opportunities for both small and large establishments. A self made business tycoon named Sven Freybe stated that; “The success of our business, the creation of jobs, and the growth of the industry as a whole will depend on initiatives like CETA that grant us greater access to key markets abroad and lead to increased investment in our people, our technologies and our businesses.”. The CETA plays a huge role in developing businesses overseas as it allows owners to face the same expenses as local entrepreneurs rather than paying additional fees to run their business in a different country. This agreement has especially benefited businesses that focus on importing and exporting goods from Canada by allowing them to avoid any tariffs placed on their products when being shipped overseas. The CETA will also expand the ability for both Canadian and EU businesses to compete in each other's national government markets. The correlation between successful businesses and economic growth is evident, when businesses expand they hire more employees as well as they provide more goods