Trade Agreements Essay

Development Prospects of Canada recommended that Canada enter into a free trade agreement with the United States (Quinlan, 318). Brian Mulroney took the advice and set foot to make such an agreement. This led to the creation of the free trade agreement through the free trade process. The free trade debate has strengthened our economy and strengthened our relations with neighbouring countries. That is why the free trade debate has had a positive effect on making Canada what the Canadian economy is largely determined by the U.S. economy, which established the North American Free Trade Agreement (NAFTA) and the Free Trade Agreement (NAFTA). The North American Free Trade Agreement is an agreement that came into force on January 1, 1995 and includes Mexico, Canada and the United States of America. This agreement is expected to bring in between $1 billion and $3 billion in each country. NAFTA ensures that a certain amount of goods produced and traded between the three countries of Toledo, H. (2006). Liberalisation of workers and trade: simulation of the potential impact of the free trade agreement on Venezuela`s production and wages. Applied Economy, [online] 38 (9), 1063-1069. Available at: dx.doi.org/10.1080/00036840500400103 [Access May 8, 2017].

The liberalization of the Australian economy and the decentralization of big business have been the driving force behind our prosperity. (Armstrong, n.d.) In addition, most of the trade liberalization occurred in the 1970s, 1980s and 1990s, removing trade barriers. At the same time, opportunities for free trade agreements have been created with Australia and our major partners in the Asia-Pacific region, particularly with East Asian economies. There is a free trade agreement between two or more countries in which members are working to create a free trade area. These include the sale of goods and services which, beyond common borders, lack protectionist measures such as tariffs or quotas, which may not allow goods to move freely. (BusinessDictionary.com, 2017) The decline of centralized systems has enabled the establishment of a multilateral trading system through non-discriminatory market opening. Free trade agreements have been extremely beneficial to the Australian economy, as our partnership with the East Asian and Asia-Pacific economies has rapidly strengthened. This has allowed us to sign preferential trade agreements that work to liberalize trade and investment among members. The free trade agreement has allowed our economy to prosper and prosper through increased investment and trade, and has made our economy more competitive on the international stage. However, proponents of the free trade agreement say they are causing structural unemployment and have reduced the growth of our economy. In addition, the Australian Productivity Commission concluded that “most agreements are full of exceptions… The economic benefits of free trade agreements are often overstated and…

are often more political than economic” (PC,2010). Although free trade agreements are controversial in terms of lowering labour standards for workers, organizations and stakeholders, the benefits outweigh the negative prospects of free trade agreements. Ultimately, free trade agreements provided the Australian economy with long-term stability and growth through our ties to highly industrialized countries such as India and China.