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NAFTAThe North America market is one of the richest in the world Measured in terms of GDP it is the equivalent of Western Europe But with a somewhat smaller population GDP per capita in North America Canada Mexico and the US is around 12 percent higher than in Western Europe The North American Free Trade Agreement NAFTA which came into effect January 1 1994 sets out the schedule for tariff elimination for members As a small country Canada has always been careful in its dealings its large neighbor the US however compliance to this agreement threatens our very existence Canada was unfairly taken advantage of in the singing of this agreement our identity of a sovereign nation is at risk The North American market is also one of the most sophisticated and demanding It is an excellent base from which to develop and launch new products From a Canadian base companies can establish a solid market position throughout North America and then reach out to serve global markets This agreement which and contains many key provisions to facilitate the conduct of business among the three countries has been a benefit to Canada-US-Mexico trade The continent-wide transportation system that binds this market together is efficient and cost-effective Carriers of all modes are investing in more sophisticated technology and entering into strategic alliances to improve service Border crossings are becoming easierCanada provides an ideal location for serving the entire North American market Companies based in Canada have preferred access to a market of 380 million people with a combined Gross Domestic Product GDP of more than 10 trillion Canadian dollars However our participation in the agreement allows the US unobstructed to our market This poses a serious problem when looking at pure numbers Canada is a country of approximately 28000000 people and the US a country of about 280000000 The extra 0 means the US in ten times greater then Canada in population size The implications of
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