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NAFTA has greatly benefited from the Canadian economy

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amckeownamckeown (PRO)

There are many benefits to NAFTA for Canada. Free trade has eliminated tariffs which have decreased prices of many of the purchases by consumers, manufacturers and increased our exports of goods and services to a larger market. It has also reduced the risk of inflation and allowed the Federal Reserve to keep the interest rates low. The reduced prices for domestic consumers and reduced costs of finished products make them more competitive. Canada has gained access to vastly expanded markets for our goods and services and can expect potential increases in sales both domestically and to other countries.

Return To Top | Posted:
2017-05-11 00:17:09
| Speak Round
EFHeierEFHeier (CON)
The aim of NAFTA was to increase cross-border commerce in North America.  It links 450 million people and together its members generate $20.8 trillion.  However; particularly for Mexico, having access to the Canadian economy has its cons.  While NAFTA created more industry and service jobs in Mexico, rural Mexican farmers and labourers cannot compete against highly-subsidized Canadian and American farmers.  Imported food from Canada and the United States to Mexico have replaced national Mexican products.  This has resulted in a loss of food sovereignty and increased rural unemployment.  These unemployed, rural, Mexican workers cannot buy products from Canada even if they wanted to.    The proportion of Canadian exports sent to Mexico has grown only modestly under NAFTA.  It has gone from 0.7% (1997) to 1.5% (2015).  In reality, Canada still doesn't trade that much with Mexico.  Many believe that the Canadian automotive industry took a real hit under NAFTA by sending jobs to Mexico.  While it is true that Mexico did see more automotive jobs shift south, over time, it has been shown that the main culprit for jobs losses under NAFTA  has been automation and not the deal itself.  Trump threatens to tear up the NAFTA agreement and get a better one.  For the softwood lumber industry where Canadian lumber has a lower stumpage price (due to lumber coming from Crown land and not private land) the American's cannot compete.  Furthermore, it is particularly difficult for the U.S. to compete against Canadian exports because of the Canadian dollar being so low.  Finally, when it comes to Canadian-style social programs, instead of raising the bar, for the U.S. and Mexico, Canada has just lowered their own.  Under NAFTA, Canada has imposed cuts to unemployment insurance, old age security and federal transfers to the provinces for health care and education.  Instead of bringing the U.S. and Mexico up to Canadian social program standards, Canada has just lowered theirs to conform to their partners' lower standards.  Clearly the U.S. and Mexico have not benefited as much as one might believe from having access to the Canadian economy.

Policy Alternatives. (n.d.). Lessons From NAFTA. Retrieved May 10, 2017, from Policy Alternatives.com. Website: http://policyalternatives.ca/sites/default/files/uploads/publications/National_Office_Pubs/lessons_from_nafta.pdf

Russell, A. (April 25, 2017). Reality check: Does Canada subsidize softwood lumber? Retrieved May 10, 2017, from Global News. Website: http://globalnews.ca/news/3399952/reality-check-does-canada-subsidize-softwood-lumber/

Brownell, C. (February 3, 2017). NAFTA: It's less important to Canada than you might think. Retrieved May 10, 2017, from Financial Post. Website: http://business.financialpost.com/news/nafta-its-less-important-to-canada-than-you-might-think

Return To Top | Posted:
2017-05-11 01:50:03
| Speak Round
amckeownamckeown (PRO)

Between 1993-2015, trades made between NAFTA countries has quadrupled, boosting economic growth, profits, and jobs for the countries. Regional trade has increased since the treaty’s first two decades from $290 billion to more than $1.1 trillion. It is proven that standards of living have continually been rising since NAFTA came into effect. The increased economic growth caused by trades also has a direct relation to the increased jobs. The United States has been Canada’s largest trading partner, and their trade has increased because of Canada’s trade liberalization. Economists agree that NAFTA has provided many benefits to the North American economies. Foreign investment in Canada has been encouraged by having NAFTA in place. This is because of the protection that is offered by NAFTA, and the reduced risks that come from investing into Canada. Countries that are not involved in the free trade agreements with Canada are encouraged to invest more into Canada. Foreign investment is beneficial as countries outside the free trade zone see the opportunity to build facilities in our country to take advantage of the expanded markets and lowered costs. It has also encouraged Canadian firms to bid on contracts in Mexico and America, also having benefits.


Amadeo, K. (n.d.). 6 Benefits of NAFTA You May Not Even Realize. Retrieved May 11, 2017, fromhttps://www.thebalance.com/advantages-of-nafta-3306271

Benefits Of NAFTA for Canada. (2011, July 21). Retrieved May 11, 2017, fromhttp://benefitof.net/benefits-of-nafta-for-canada/

Mcbride, J., & Sergie, M. A. (n.d.). NAFTA's Economic Impact. Retrieved May 11, 2017, fromhttp://www.cfr.org/trade/naftas-economic-impact/p15790
Return To Top | Posted:
2017-05-11 12:29:08
| Speak Round

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