This has also been an advantage for the Canadian economy. Overall, free trade has greatly benefited Canada and its citizens. Without it, the Canadian economy would not be as prosperous and successful as it is currently.
Free Trade between our country and the Americans was studied in depth and analyzed until it came into effect on January 1, 1989. The Canada-U.S Free Trade agreement created the world's largest free trade area. It consists of 380 million people producing approximately 8.5 trillion dollars worth of goods and services. (Annual .
Report, 1) The goal of The North American Free Trade Agreement (NAFTA) was to eliminate all tariffs between the two countries over a ten-year period commencing on January 1, 1989 (Annual Report, 1). By 1994, both Canada and the United States were benefiting greatly from this agreement. It was then decided that Mexico should be incorporated to the list of countries enrolled in NAFTA. The policies were discussed and Mexico entered the agreement in that same year. With Mexico entered in the Free Trade policy all of all U.S. exports became eligible for duty free. (Annual Report, 1) Levels of imports and exports to and from Mexico rose drastically for both Canada and the United States. (Annual Report, 1) Currently Canada imports 212 billion dollars worth of goods while exporting 244 billion. Giving Canada has a trade surplus of 32 billion dollars .
(Graph #1). Eighty percent of Canada's exports go to the United States. This percentage is only 25% of what Canada produces yearly (Crispo, 1). Chile was the next to be brought into NAFTA. Chile was brought into this free trade agreement because of it's incredible economic record as the leader of a market based reform in Latin America over the past decade. Bringing Chile into NAFTA would be part of the integration of South America into the North American economic policies. (Annual Report, 5) The one goal of free trade is to open up the barriers separating countries in an effort to make all of their economies stronger.