Nafta:Benefits To Canada Essay

1659 words - 7 pages

Benefits to Canada

Canada's goals in the negotiation of NAFTA were very simple. They wanted to improve their access for their goods and services to Mexico and the United States. Canada wanted to guarantee their 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 to their international competitiveness. The agreement has set a path for Canada widening their trade horizons, while also giving them a bigger stage on which to demonstrate their economic expertise and leadership.

An 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 5 to 10 years, providing barrier free access to 85 million consumers.

The North American Free Trade Agreement covers virtually every field of business in Canada. NAFTA 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's excellent and fertile farming land has produced many great results. A very superior livestock and excellent crops have contributed to a productive and prosperous trade of their agricultural products and services around the world. Canada's total exports surpasses $13 billion a year. Under NAFTA Canada and Mexico have worked out a separate agreement between themselves. Over all Canadian exports will enjoy immediate access to the Mexican market under the deal. Mexican import licenses on wheat, barley and table potatoes will be eliminated over a period of time. Also tariffs on lentils, honey, dried peas, millet, raspberries, rye and buckwheat will be dropped. All these items are important crops to Canadian farmers and with these costs cut they will enjoy a greater profit and more trade. NAFTA also opens up great opportunities for livestock farmers. Because Mexico lacks an adequate fresh water supply their livestock operations aren't very big. Therefore Mexico must rely on imports from Canada. NAFTA helps Canadian farmers and farm related businesses to a much greater ease to an ever growing market that will benefit them in the future.

There are well over 140 000 Canadians employed in the auto manufacturing industry. As well, approximately 32 per cent of Canada's manufacturing exports is directly related to the auto industry. The Mexican market however, is highly restricted, while 95 per cent of Mexican automotive imports enter Canada completely duty free. NAFTA addresses this imbalance, and more importantly corrects...

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