NAFTA Agreement Canada

In my opinion, it is best if Canada prepares a separate agreement with integration towards free trade with the US under specific regulations. The intricacies of the free trade agreement (FTA) will continue two-way trade between the countries, allowing Canada to benefit from the expanded market proposal and independent trade with the US. To implement this specifically designed system that sustains interactions between Canada and the US, the agreement has to retain a value that allows each country to benefit equally. Initially, the Free Trade Agreement would have to explicitly keep principal NAFTA rules in place. Negotiations of NAFTA have been approaching quickly with consultation between Mexico and the United States taking place in May. Anticipation

Canada is widely known for its Western oil operations and are viewed as the supplier of North American natural resources. A North American energy strategy needs to be implemented with the interests favoring Canada’s needs, while gaining independence from the US and multinational corporations. Canada is the largest supplier of oil and natural gas to the US, and NAFTA is preventing Canada from decreasing production to the US. In my opinion, I suggest that Canada renegotiates the oil supply regulations of NAFTA, to lessen the amount that crosses the border, and to receive more control over its own natural resources. To do so, Canada needs to restrict the amount of control the US has, with the involvement of NAFTA, of its own oil supply. NAFTA should entail both domestic and international benefits, and as of now, it is mostly benefiting the US through oil distribution. It is necessary for Canada to take action and develop a plan that both benefits their economy, while also allowing oil to be exported to sustain their economy. The special provisions for energy included in NAFTA resulted from the raw materials peripheries’ recognition of the key potential roles of these industries as generative sectors. Canada made significant efforts to protect their own development policies rather than being thoroughly reincorporated as U.S. raw materials peripheries, but these efforts were at best only partially successful . With that

It is necessary to maintain this relationship of successful trade as it is an important aspect of Canada’s economy. It is important to understand the repercussions if a deal with the US is not arranged and how damaging it would be the Canadian economy. A free trade deal will include a plan that is motivated sustain bilateral trade, integrated manufacturing, supply chains, business interest, and economic growth within a two-way system that enables both countries to benefit. Ultimately, a Free Trade Agreement would eliminate barriers between Canada and the US, allow fair competition established by the agreement, increase and sustain conditions for investment, and create the foundation for expanded bilateral trade benefits. The exact ramifications are hard to quantify in the agreement, and ultimately depend on the value between each currency. With that being said, increase trade between Canada and the US will stimulate the economy and allow for further growth and