The Canada Us Free Trade Agreement

From 1935 to 1980, the two nations concluded a series of bilateral trade agreements that sharply reduced tariffs in both countries. [5] The most important of these agreements was the 1960s automotive trade agreement (also known as the auto pact). [6] [7] Others feared that free trade would have negative effects because they feared capital flight and job insecurity as a result of international relocations, and that closer economic relations with the southern giant risked an erosion of Canadian sovereignty. Opponents included Mel Watkins of the University of Toronto and David Crane of the Toronto Star, one of Canada`s leading newspapers. The agreement has failed to liberalize trade in some areas, particularly the ongoing dispute over coniferous timber. Issues such as trade in minerals, freshwater and conifer wood remain controversial. The phenomenon of “cross-border shopping,” in which Canadians would take day trips to U.S. border towns to use duty-free goods and a high Canadian dollar, caused a mini-boom for these cities. The loss of many Canadian jobs, particularly in Ontario`s manufacturing industry during the recession of the early 1990s, was attributed (fairly or not) to the free trade agreement.

The Canada-U.S. Free Trade Agreement (CUSFTA) (CUSFTA) was a Canada-U.S. trade agreement, a trade agreement between Canada and the United States of America, a trade agreement concluded by negotiators for Canada and the United States on October 4, 1987 and signed by the heads of state and government of both countries on January 2. , 1988. The agreement gradually removed a wide range of trade restrictions over a ten-year period and resulted in a significant increase in cross-border trade as an improvement over the last replaced trade agreement. [1] With Mexico`s accession in 1994, the free trade agreement was replaced by the French-language North American Free Trade Agreement (NAFTA): Tratado de Libre Comercio de América del Norte (TLCAN). [2] Following the signing of the auto pact, the Canadian government considered proposing free trade agreements in other economic sectors.

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