CANADA TRADE AND ECONOMY Instructor:-Leonidas Gontzes Prepared by:-Abdulla Abushah Introduction Canada isone of the largest countries in terms of area and population, with an area of??9.
984.670 square kilometers. In terms of population, Canada has a populationof approximately 344,766,888. Canada is located on the North Americancontinent. Canada is divided into three regions and ten provinces., bordered bythe United States of America, the Atlantic Ocean to the east and the PacificOcean to the west.
The United States and Canada has the longest border line inthe world. The government is a liberal government led by Prime Minister Justin Trudeau. Which itmakes a difference point of view in Politics, economics and trade perspective.
Canada isone of the important economic countries and one of the developed and productivecountries. Canada links several political and economic treaties, for examplethe NAFTA treaty, which includes the North American countries, including theUnited States, Canada and Mexico. Canada is one of the richest countries interms of per capita income and it is also a member of the Group of Eight (G8).Canada has joined the list of the largest trading countries, and Canada relieson exporting its products to some countries such as the United States, the UnitedKingdom and Japan (where it is the most heavily exported).The Canadianeconomy is considered to be a mix of products including the wood and oilindustry. Canada is also one of the major energy exporters for the acquisitionof huge quantities of natural gas, making it the second largest reserve in theworld after Saudi Arabia, which allowed the Canadian government to employ morethan three quarters Canadians in both private and public sectors.As afollow-up to the Canadian political and economic news, we analyzed theconflicting point of views in Canada from October 2017 to January 2018, and wewill explain them briefly in the upcoming articles.
Therenegotiating of NAFTA. Canada, theUnited States and Mexico will begin meetings to renegotiate the North AmericanFree Trade Agreement (NAFTA) at the request of US President Donald Trump, whohas put the issue among his top political priorities.Negotiatorsfrom the three countries has met in the US capital to update the tradeagreement in force since 1994, which has helped boost trade.”It’stime to do that,” Trump said.Trump haslong denounced the deal as a “disaster,” saying it is responsible forthe loss of many jobs in the United States.Thepresident is supported by a part of the democratic opposition.”NAFTAis directly responsible for the transfer of one million jobs with lucrativesalaries abroad,” said party deputy Rosa Delauro.
Washingtonplans to discuss trade imbalances with Mexico, which since the signing of theagreement have moved from a surplus of $ 1.6 billion to a deficit of $ 64 billion.Theagreement is vital to Mexico’s economy, with the United States accounting for80 percent of the country’s exports, mostly manufacturing products such asautomobiles and agricultural products.”Thedeficit is a big problem that needs to be addressed,” a US CommerceDepartment official said, declining to be named.KhaymZabladovsky, who negotiated the original agreement on the Mexican side, saidthe problem of US deficits could not be resolved within the “framework oftrade relations.
“”Thedeficit is linked to the macroeconomic situation, the US spends more than itproduces,” he said, referring to the views of many economists.The startingpoint for the renegotiation of NAFTA is to reach a “more balanced andfavorable trade agreement for jobs that are rewarding to the Americans andcontribute to economic growth in the United States,” the official said.Negotiationswith Canada, the most important customer and largest energy source for theUnited States, are expected to be calmer.
The exchanges between the twocountries under the NAFTA agreement remain broadly balanced.”Thesenegotiations are a sign of a serious and serious moment for all of us,”Canadian Foreign Minister Christy Freeland said, not excluding “toughpositions” during the negotiation process.She stressedthat the Canadian negotiators will adopt a constructive but firm attitude inWashington, noting that “tact and strength are not contradictory.””We arecommitted to a good agreement, not just any agreement,” Freeland said.The mostimportant point will undoubtedly be a review of the dispute resolutionmechanism known as Chapter 19, which allows arbitration of disputes concerningcompensation and dumping.The UnitedStates plans to cancel the chapter, which has so far been favorable to Canadain the dispute over wood for construction.
The disputehas seen many fluctuations since 1983, with American producers accusing theirCanadian counterparts of exporting wood to the United States at dumping prices,less than the cost of production.On the issueof Chapter 19, Canadians can rely on the support of Mexicans who wish to retainthis mechanism.”Thismechanism guarantees impartiality and objectivity in resolving the dispute andavoids the possibility of considering these cases before an American, Canadianor Mexican court,” said the Mexican senator from the opposition NationalAction Party, Ernesto Cordeiro.
Talks thisweek are the first round of a series to be held alternately in the threecountries. The second round will be held in Mexico on October 5 while the thirdwill take place in Canada at an undisclosed time.Despite manydisparities, Americans want to speed up the process.
“Wehave an aggressive agenda for these negotiations,” said the official atthe Ministry of Commerce. Canada’splan to receive one million immigrants Canada has announced that it willwelcome more than 1 million immigrants over the next three years in an effortto stimulate economic growth and innovation.Canada will raise the proportion ofimmigrants during each of the next three years, where it will receive 310thousand migrants in 2018, and 330 thousand immigrants in 2019, and to welcomethe 2020 by 340 thousand immigrants.
“Immigrants willcontribute through their qualifications to support the economy and innovation,and will help preserve our country’s top positions in the global economy,”said Canadian Immigration Minister Ahmed Hussein.The Canadian government statementsaid the ministry aims to raise the permanent population by 1 percent by 2020.According to data released byStatistics Canada in 2011, the largest number of immigrants to Canada comesfrom Asia and the Middle East.Canada’s economy is expected to growby 3 percent in 2017, but will fall to 1.8 percent by 2019.
Plan detailsOf all these newcomers, about565,000 will be accepted through economic programs, with a quarter of thatcoming from one of the Federal Express programs under the Express Entry system.Xpress Intre is a fast-paced systemfor applications for certificate holders and scientific expertise.184,000 economic migrants and theiraccompanying family members will be admitted through the Provincial Nominee Programs,which allow provinces and territories to nominate individuals based on theirability to stabilize the labor market in those areas.Among other economic programs,Quebec will welcome 94,000 migrant workers.Another type of migration is thereunification of approximately 250,000 couples and children with their parentsalready residing in Canada.The third type, includingresettlement of refugees, will target about 43 thousand refugees for permanentresidence by 2018, 45650 in 2019 and 48,700 in 2020.
Oil leaks from Keystone pipes. The KeystonePipeline is a pipeline linking the United States of America and Canada, throughwhich the daily oil between the two countries is shipped, starting from theprovince of Alberta through the state of Illinois and Texas. These pipelineswere licensed to operate in 2010 .Trans Canada, the operator of thecontroversial Keystone pipeline, said Thursday that part of the pipeline hadbeen shut down because thousands of gallons of oil had leaked in South Dakota.”We are respondingimmediately to an accident in Amherst (South Dakota),” the company said onTwitter.
“We have activated emergency response procedures and sent groundcrews to assess the situation.”The crew closed the pipeline atabout 6:00 a.m. local time (1200 GMT) after a drop in pressure was detected asa result of the leak being investigated, the company said in a press release.The estimated oil volume isestimated at about 5,000 barrels, according to the company based in Calgary,Canada.A South Dakota environmentalofficial told NBC News that the smuggled oil appeared to be confined to anagricultural area and had not reached any waterways.
Part of the pipeline leak is locatedwithin a low-density area in Marshall County County. “The leak wascompletely isolated within 15 minutes and emergency response procedures wereactivated,” the company said.Trans-Canada experts in emergencymanagement, engineering, environmental management and safety assess thesituation, she said.
Canada Complains UnitedStates Canada fileda complaint with the World Trade Organization (WTO) accusing the United Statesof violating international trade rules.Thecomplaint targets US practices relating to tariffs on what is supposed to beaid and selling products at less than their cost.The measurecomes amid disputes between the two countries over issues such as dairyproducts, aircraft sales and timber.
The twocountries are also engaged in vigorous efforts to renegotiate the NorthAmerican Free Trade Agreement (NAFTA).US PresidentDonald Trump has threatened to abandon the deal, which sets terms of tradebetween the United States, Mexico and Canada.Hisadministration has also taken a more protective stance on trade and has takenaction in a number of disputes that it says are dumping products in the UnitedStates.Canadaaccuses the US International Trade Commission (ITC) of taking decisions duringconflicts in Washington’s favor.Canada fileda complaint with the WTO on 20 December. The complaint was circulated among theWTO members on Tuesday.Thiscomplaint takes 60 days for consultation. If not resolved at that time, theyare subject to dismissal by a WTO Committee.The UnitedStates representative to the World Trade Organization said Canada’s complaintwas “an unjustified attack on the US trade system”, stressing that”all Canadian accusations are baseless and may reduce US confidence inCanada’s commitment to any reciprocal agreements.”US CommerceSecretary Wilbur Ross also expressed confidence that his country would win anyinternational arbitration case.