Impact of NAFTA On the Canadian Economy

Impact of NAFTA On the Canadian Economy

NAFTA Explanations
Topic: What was / is the NAFTA Impact on the Canadian Economy?

Slide 1: Presentation of the limited topic
Slide 2 NAFTA Creation
• Launched in January 1994: the North American Free Trade Agreement was signed 14 years ago between Canada, Mexico and the United-States in January 1994.  
• Expansion of the 1988 Canadian-US FTA: For Canada, NAFTA was a mere extension
of their previous FTA signed with the United-States in 1988. All the liberalization measures of the FTA were maintained and reinforced.
• “World's largest free trade area”:
• US$11.4 trillion: NAFTA is often described as the world’s largest free trade area since it possesses an impressive market size: US$11.4 trillion, which is far higher than what prevails in the European Union which accounts for only US$8.3 trillion. NAFTA free trade area represents about one-third of the world’s total GDP.  
• “A valuable example of the benefits of trade liberalization”: NAFTA is often officially depicted by US, Canadian and Mexican governments as a valuable example of the benefits of trade liberalization. The creation of NAFTA lies on the international trade theory according to which each country participating in free trade receives a net gain from these commercial exchanges.  
• Stimulated Canadian international trade with both Mexico and the United-States: NAFTA has significantly developed the economic and commercial relations between the three country members. Today, trade with NAFTA partners accounts for more than 80% of Canada and Mexican trade and about a third of U.S. trade. Canada has become the biggest export market for U.S. products.   In 2007, Canada's merchandise trade with its NAFTA partners reached $598.4 billion. Canadian merchandise exports to the United States has grown at a compounded annual rate of 6.6% from 1993 to 2007 and trade between Canada and Mexico has almost quadrupled over the same period.  
Slide 3 NAFTA content
• Includes...