Canada This Report Will Identify

Canada

This report will identify and explain some of Canada's strengths, weaknesses, opportunities and threats as a trading nation in our current global marketplace. The World Trade Organization recently reported that since 1996, the Canadian trade policies have been a major influence on that nation's economic performance. The economy has been functioning on all cylinders and does not look as though it will be slowing down soon. The major economic coup for Canada was the fact that they joined forces with the United States and Mexico in the implementation of the North American Free Trade Agreement (NAFTA). Since NAFTA, the United States share of the Canadian trade market continues to rise and currently represents over eighty percent of all merchandise exported out of Canada and nearly seventy percent of all merchandise imported into Canada. but, Canada is not tied to only Mexico and the United States; the nation's foreign trade ministers have established other free trade ties around the world. Simply put, Canada is and will continue to be an international trading force to be reckoned with.

Canada as a trading partner has many strengths. The most important strength for Canada's trade of course was launched in 1994 when they helped form the world's biggest free trade area with the United States and Mexico. Since the initiation of NAFTA, all three nations have benefited with reinvigorated economic growth and an increase in the standard of living. NAFTA has a strong foundation for future growth so the good times appear as they will continue to roll on. Another strength demonstrated by Canada is in the fact that they are not just satisfied with NAFTA as the only source of external trade. Canada is continuously looking for additional trading partner nations as demonstrated by the fact that they recently signed free trade agreements with Chile and Israel. Also, because Asian nations such as Korea, China and Japan are represented by large populations throughout Canada, import and export opportunities with the Asian nations are available for Canada that are not readily available to other countries.

Canada does have weaknesses in their armor. One of Canada's greatest concerns is the continued positive surge of the United States economy. Through NAFTA, Canada has become almost too dependent on the United States. In addition, other weaknesses have manifested themselves like it seems to be extremely difficult for the Canadian government to create a balance between some internal regulatory pressure and that complicates external trade relations. For example, the Canadian government is notoriously protective of their agricultural and dairy industries as well as their automotive export import ratios. Other concerns expressed from Canada's various trading partners include restrictive taxation for the foreign film distribution and production industries and attempts to blatantly dump steel on Chile and the Untied States.

But NAFTA presents far more opportunities than weaknesses. This can be demonstrated by the fact that the Canadian textile industry has flourished though NAFTA and the positive exposure that industry has received has translated into new lateral agreements with Japan, Hong Kong and China, Chile and other nations seeking high quality textile, clothing and shoe imports. Although recent scares with mad cow disease have curbed some cattle exports, overall the cattle industry in Canada is robust and appears to have a solid future exporting to Mexico through NAFTA who in turn would export to nations' they have free trade agreements with like Japan. The opportunities provided by free trade tariff protection will continue to help Canada export food products, textiles, clothing and footwear throughout the world.

The liberal import export mentality has created some threat like scenarios. For example, NAFTA has opened the Canadian boarders for not only products, but also for business people and employees. These new liberal boarder policies have shown to be overly tempting for the likes of criminals and terrorists attempting to maneuver their way into or even out of the United States. In addition, although this report has focused mainly on Canadian exports, the nation has been forced to consider stricter import controls in order to help protect the nation's citizens' health as well as the safety of the pristine environment because many nations like the United States and China have proposed new oil exploration options throughout the Canadian frontier.