Free Trade agreement Essay

There be many expediencys and isadvantages of the assoil Trade Agreement betwixt Canada and America, yet Canada is non getting much of a good deal, exclusively in certain ways argon Canadians at an advantage. Some advantages be an increase in production, and better U. S-Canada relations. Some of the damages are diminished existence germinateth, loss of tradings, diminished sovereignty, and doers facing concessions on wages, running(a) conditions, and living standards. To begin, an advantage to the FTA is an increase of production.Canadian businesses would increase production to economize up with American producers, so as not to be bought out. With more investment in Canadian businesses due to elimination of tariffs, Canadian constancy will grow and expand, increasing production and efficiency (Bain Pg. 376). Another reason why the issue Trade Agreement is an advantage to Canada is that it helps relations between Canada and the U. S, because the deuce nations discom bobulate not always seen eye to eye, they now have something to connect them. The FTA helps the two countries get on each others good military position due to help from one another in business and trade.To summarise it up, there are not precise many reasons why the Free Trade Agreement is an advantage, but there are some. There are many reasons why the FTA is a disadvantage. Firstly, the population of Canada isnt increasing exchangeable it should because of the FTA our workers are going to America to get Jobs because America can tolerate more money to their workers because they have the money to do it, whereas Canadian businesses are write downing wages to make more money to try to keep up with the American production.Canadian workers follow the raw materials to America The cut down of opportunity to get more money. Everyone leaves to America making our population not increase because if they stay here, the workers may not earn good oney, so they cannot spend it, so goods do not get produced. The result a downward economic spiral(Finn Pg. 10). Another reason the FTA is a disadvantage is increased unemployment. Many American companies that have branch plants operating in Canada will become redundant and be shut down. These branch plants were open up in Canada to provide shelter behind the tariff wall.Tariffs were not added to change price of their products because they were behind the tariff wall. Under the FTA, there are no tariffs, so the branch becomes unnecessary, and the customers can be supplied equally well if not better and cheaply from one plant in he U. S. The culmination of these branch plants results in many Canadian Jobs disappearing (Conklin Pg. 28). Also, many businesses that are owned completely by America, where there is a bigger marketplace and more opportunity for growth, and there are no taxes to sell products to Canada from the U.S under the FTA. The moving and shutting down of these factories and plants creates more unemployment and less Job opportunities (Bowker Pg. 32). Many Canadians considering starting a business in Canada may be lured to America to start their business, because with the removal of ariffs, these companies can supply Canadian customers fair as easily from America while being nearer the larger American markets with the advantage of lower operating costs. This idea of starting businesses in the U.S instead of Canada, takes away Jobs from Canadian workers before even prominent them a chance. Another reason for the FTA to be a disadvantage is Canada as a nation losing its sovereignty and independence. Ownership and control of Canadian industry and resources will gravitate towards the United-States under the Free Trade Agreement. Decision making for these industries will be transferred to the boardrooms in America. Economic powers feces is usually followed by political power, so it is probable that Canada could face the eventual(prenominal) loss of political independence.Lastly, an examp le of the disadvantages of the FTA is Canadian workers facing concessions on wages, working conditions, and living standards (Conklin Pg. 30). Canadas extensive social benefit programs like, health like system, unemployment insurance benefits, and family allowance, which do not exist on the same descale in the U. S, are vulnerable to attack as unfair subsidies to be reduced or eliminated. Which in turn would ncrease the cost of living for Canadians alter by the changes.Money would be needed to help pay for businesses without help, which could lower workers wages and have many workers losing their Jobs. The Americans are basically trying to take over the Canadians and take away their distinction and independence. So in summation, the FTA is not very advantageous because of Job loss, minimal population growth, disappearing sovereignty and worker concessions. Therefore, the disadvantages of the Free Trade Agreement outweigh those of the advantages, so Canada is not getting a very g ood deal.