Free Trade Agreement: Planning for a stronger Canada

WHO CUT THE CHEESE PRICE?   The Free Trade agreement in principle was recently signed between Canada and the European Union.  It was hailed as a significant step to boosting the economy of Canada while having minimal negative impact for Canadians. Free trade   So what is a Free Trade Agreement?  Essentially it eliminates tariffs or taxes on cross border imports/exports making it easier for companies to trade products and/or services with neighbouring countries. It’s not just as simple as that though, there has to be limits or quotas set where each trading partner agrees to a set level. Depending on what the country exports or imports the most can determine what is set in the quotas. So for instance Canada has a lot of trees and the US needs to build a lot of houses, it would be in both of their interests to eliminate the tariffs on trees for, let’s say the first 100,000 tonnes. Anything past the 100,000 tonnes then tariffs will be applied so companies would have to budget their exports in order to keep with-in the quota. That’s great for Canada, they’re selling trees like they’re going out of fashion, but what’s the US getting out of the deal? They put […]

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