Economic Sovereignty

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Economic Sovereignty

• Social 10
• Mr. Bauer

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• Canada trades with 175 other countries in the
  world but the greatest trade comes with the
  United States. 
• The movement of goods between the two countries
  is the greatest bilateral (two-way) flow in the
  world.

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•   Free trade refers to the interchange of good
  and services between countries with few or no
  government imposed restrictions.
• Canada and the United States signed the Free
  Trade Agreement ( FTA) in 1989.  In 1993, Canada,
  the United States, and Mexico signed the North
  American Free Trade Agreement (NAFTA). These
  agreements removed tariffs.

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• Tariffs are taxes placed on goods entering a
  country from other countries.  They make these
  goods more expensive so consumers will buy
  products made in their own country.

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History

• In 1854, Canada and the US signed their first
  free trade agreement, The Reciprocity Treaty. 
•  In 1871, the two countries signed the Treaty of
  Washington, which settled border disputes between
  the two countries.  Disputes were often settled
  by arbitration (a neutral party decides)

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• After Confederation, Prime Minister MacDonald
  wanted to increase cross Canada links so he
  developed The National Policy.  It had 3 points.
• Place a tariff on US goods entering Canada making
  them more expensive.
• Increase settlement in the prairie West.
• Complete the Canadian Pacific Railway.

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• The Autopact was signed in 1965 and removed
  tariffs on cars made in one country and shipped
  to another.  This is an example of Sectoral Free
  Trade. 
• By the 1980s the government started taking a
  continentalist rather than a nationalistic
  approach to the economy.

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Canada - World Economic Sovereignty

• A main aspect of sovereignty is relating to
  other countries.
•  Most of Canadas trade is in the form of
  merchandise (forestry, agricultural, and fishing
  products) but an increasing amount comes from
  non-merchandise (legal charges, consulting fees,
  insurance premiums, etc.).

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• Another aspect of dealing with other countries
  is that it affects the value of the Canadian
  dollar.  If the net flow of money is into Canada
  then the dollar increases in value.  If the net
  flow of money is out of Canada then the dollar
  decreases in value.
•  The major trade blocs are the North American
  Free Trade Agreement (NAFTA), the European Union
  (EU), and the Asian Free Trade Association
  (AFTA). 
• In 1993 the Maastricht Treaty was signed and
  several European nations joined together to form
  the European Union. In 1999, a common currency
  for the group was formed (Euro).

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• Canada has wanted to increase trade with the EU
  in order to have less dependence on the US. 
• Canadian trade with the Pacific Rim (Northeast
  Asia, Southeast Asia, Australia, and New Zealand)
  has been steadily increasing.
• The World Trade Organization (formerly the
  General Agreement on Tariffs and Trade) tries to
  promote trade worldwide.  The G-7 (G-8) is a
  meeting of the 7 (8) industrialized nations of
  the world

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G8 Countries and their current Leaders

• Canada Paul Martin
• France Jacques Chirac
• Germany Gerhard Schröder
• Italy Silvio Berlusconi
• Japan Junichiro Koizumi
• Russia Vladimir Putin
• United Kingdom Tony Blair
• United States George W. Bush