Which of the following Countries Does Not Have a Free-Trade Agreement with Canada
Criticism of NAFTA generally focuses on the U.S. trade balance with Mexico. While the United States enjoys a slight advantage in services trade, exporting $30.8 billion in 2015 and significant $21.6 billion, its overall trade balance with the country is negative due to a gaping $58.8 billion merchandise trade deficit in 2016. In comparison, 1993 was a surplus of $1.7 billion (in 1993, the deficit was $36.1 billion in 2016). Jorge Castañeda, who served as Mexico`s foreign minister under Vicente Fox Quesada`s government, argued in a December 2013 article in Foreign Affairs that NAFTA deserved „vital support” from the Institutional Revolution Party (PRI), which has been in power continuously since 1929. Fox, a member of the National Action Party, broke the PRI series when he became president in 2000. None of these other countries are not only members of NAFTA, none have a free trade agreement with the United States. From the beginning, NAFTA`s critics feared that the agreement would lead to the relocation of American jobs to Mexico despite the complementarity of the NAALC. NAFTA, for example, has affected thousands of American autoworkers in this way. Many companies have moved production to Mexico and other countries with lower labor costs.
However, NAFTA may not have been the reason for these measures. President Donald Trump`s USMCA should address these concerns. The White House estimates that the USMCA will create 600,000 jobs and add $235 billion to the economy. Withdrawing from the bloc would be a relatively simple process, according to Article 2205 of the NAFTA Treaty: „A party may withdraw from this agreement six months after its written declaration of withdrawal to the other parties. If a Contracting Party withdraws, the Agreement shall remain in force for the other Contracting Parties. About one-quarter of all U.S. imports, such as crude oil, machinery, gold, vehicles, fresh produce, livestock and processed foods, come from Canada and Mexico, the second and third largest suppliers of imported goods to the United States. In addition, about one-third of U.S. exports, particularly machinery, vehicle parts, mineral fuels and plastics, go to Canada and Mexico. Proponents sometimes cite oil exports as evidence that NAFTA has helped Canada.
According to MIT`s Observatory of Economic Complexity, the United States imported $37.8 billion worth of crude oil in 1993, of which 18.4% came from Saudi Arabia and 13.2% from Canada. In 2015, Canada sold $49.8 billion to the United States, or 41% of its total crude oil imports. In real terms, Canada`s oil sales to the United States increased by 527% over this period and are the largest supplier to the United States since 2006. Does this mean that Canada and the United States are the winners of NAFTA and Mexico is the loser? Perhaps, but if so, why did Trump launch his campaign in June 2015 with the words: „When are we beating Mexico at the border? They make fun of us, of our stupidity. And now they are beating us economically”? While thousands of American autoworkers undoubtedly lost their jobs as a result of NAFTA, they could have done worse without NAFTA. By integrating supply chains across North America, maintaining a significant portion of production in the U.S. has become an option for automakers. Otherwise, they might not have been able to compete with their Asian rivals, resulting in even more jobs being cut. „Without the ability to move low-wage jobs to Mexico, we would have lost the entire industry,” Gordon Hanson, an economist at UC San Diego, told the New York Times in March 2016. On the other hand, it may be impossible to know what would have happened in a hypothetical scenario. In which country do you have access to 1.5 billion consumers in 51 countries? Canada.
As far as access to the world market is concerned, this is not improving. With 14 free trade agreements covering 60% of global GDP, Canada is opening the doors to cross-border growth. It is difficult to find a direct link between NAFTA and general employment trends. The Economic Policy Institute, which is partly funded by the union, estimated that in 2013, 682,900 net jobs were displaced by the U.S. trade deficit with Mexico. In a 2015 report, the Congressional Research Service (CRS) said NAFTA „did not cause the huge job losses feared by critics.” On the other hand, it was recognized that „in some sectors, trade-related effects could have been greater, particularly in sectors most exposed to the elimination of tariff and non-tariff barriers, such as the textile, clothing, automotive and agricultural industries”. U.S. International Trade Commission. „U.S.
Services Trade with Mexico, 2012 – 2016.” Retrieved 25 March 2020. The North American Free Trade Agreement between Canada, the United States and Mexico entered into force on January 1, 1994, creating the world`s largest free trade region by GDP. In 2014, NAFTA`s combined GDP was estimated at more than $20 trillion, with a market of 474 million people.   Building on this success, Canada continues to negotiate with more than 40 countries and has concluded free trade agreements, most recently with South Korea, which is Canada`s first free trade agreement with a partner in the Asia-Pacific region. In 2018, Canada also concluded two other important multilateral trade agreements: the Comprehensive Economic and Trade Agreement (CETA) with the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with ten other Pacific Rim countries.  On September 21, 2017, CETA was provisionally applied, immediately removing 98% of EU customs positions on Canadian goods.  Canada is currently the only G7 country to have free trade agreements with all other G7 countries. Free trade with the last G7 country, Japan, began with the entry into force of the CPTPP on December 30, 2018. In 1994, the United States, Mexico and Canada created the world`s largest free trade region with the North American Free Trade Agreement (NAFTA), which generated economic growth and helped raise the standard of living of the people of the three member countries. By strengthening trade and investment rules and procedures, this agreement has proven to be a solid foundation for building Canadian prosperity and has provided a valuable example of the benefits of trade liberalization for the rest of the world. The new agreement between Canada, the United States and Mexico will serve to strengthen Canada`s strong economic ties with the United States and Mexico. Discover new ways to expand your international presence.
Canada`s extensive (and growing) trade network provides Canadian businesses with preferential access to various markets around the world. .