Canada Development Prospects recommended that Canada enter into a free trade agreement with the United States (Quinlan, 318). Brian Mulroney accepted the council and set foot to make such an agreement. This led to the creation of the Free Trade Agreement through the free trade debate process. The free trade debate has strengthened our economy and strengthened our relations with neighbouring countries. As a result, the free trade debate has had a positive impact on Canada in making Canada what Rosewarne is, p. (2015). Free trade agreements, temporary labour immigration and the erosion of employment standards. Australian Options, Sommer (2014/2015), p.2, 3. In the 1970s and 80s (the local equivalent of Canada`s third option policy), a “realistic” approach began to characterize the country`s traditional nationalist and protectionist economy. From opposition to the over-dependence of the United States, Mexico hailed them as inevitable. Over time, the Mexican economy has become even more dependent on the United States than the Canadian economy.2 Currently, the United States accounts for well over 80% of total Mexican trade.
The positive effects of free trade agreements on the organisation promote freer trade flows and allow companies to maintain closer relations with our main trading partners. Free trade agreements “not only eliminate tariffs, they also address barriers that impede the movement of goods and services between the parties.” (Ministry of Foreign Affairs and Trade, 2017) This opens up other areas for trade with the decrease in protectionist policies, which leads to an increase in the level of growth for both sides through investment and trade. In addition, free trade agreements can make a significant contribution to increasing Australia`s productivity and increasing GDP growth. This will greatly benefit organizations by allowing domestic companies “to access cheaper intermediate consumption, introduce new technologies and promote competition and innovation.” (BusinessDictionary.com 2017) Ultimately, Australian productivity will improve the organization and benefit from it by eliminating inefficiencies and bottlenecks in the form of unproductive child industries, resulting in a loss of growth in our economy. (Ministry of Foreign Affairs and Trade, 2017) (BusinessDictionary.com 2017) Free trade agreements promote greater regional economic integration and enhance “Australia`s attractiveness as an investment objective”. can offer enhanced trade opportunities that contribute to the sustainable economic growth of less developed economies.” (BusinessDictionary.com 2017) The Canadian economy is largely determined by the U.S. economy, which launched the North American Free Trade Agreement (NAFTA) and the Free Trade Agreement (CFTA). The North American Free Trade Agreement was an agreement that entered into force on January 1, 1995, involving Mexico, Canada and the United States of America. This agreement is expected to generate $1 billion to $3 billion in profits in each country. NAFTA ensures the production and trade of a certain quantity of goods between the three countries Department of Foreign Affairs and Trade. (2017).
Benefits of free trade agreements. [online] Available at: dfat.gov.au/trade/agreements/Pages/benefits-of-ftas.aspx [Accessed May 1, 2017]. Free trade agreements are of great use to workers and trade unions, and despite the negative arguments for low labour standards in the media, these groups continue to benefit. Negative effects are the “conditions under which these products are manufactured. very long working hours, low wages, dangerous jobs where discrimination and intimidation by the employer and oppression by the state were the rule.” (BusinessDictionary.com 2017) The appalling working conditions that force workers in third world countries to produce cheap products are extremely damaging. In addition, “union leaders are imprisoned or even murdered” (BusinessDictionary.com, 2017), resulting in companies developing a negative reputation among consumers and consumers stopping products that buy products that are fair trade. . .