Canada Us Free Trade Agreement 1989
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The debate in Canada on the implementation of the negotiated agreement has been highly controversial. Canada`s opposition Liberal Party, led by John Turner, strongly opposed the deal, saying it would “tear it apart” if he became prime minister. The opposition New Democratic Party, chaired by Ed Broadbent, also strongly opposed the deal. Both sides argued that the agreement would infringe on Canadian sovereignty and argued that Canada would effectively become the “51st state” of the United States if the agreement was implemented. They also expressed concerns about how Canada`s social programs and other trade agreements, such as the shutdown, would be affected.  After all these discussions and debates, the free trade agreement was adopted and entered into force on time, with the understanding that the agreement was a document in development with mechanisms for modification and resolution of problems. What the ESTV has attempted to do is simply formulated in the objectives agreed upon by both nations: under NAFTA, the services provisions are extended to almost all services sectors. The agreement also removes federal and local restrictions on partner countries` access to service markets, except in certain cases, as well as citizenship or permanent residence requirements for licensing professional providers. Pro-free trade Canadians began to believe that Canada`s commodities would no longer preserve the nation, so the country should focus on its manufacturing competitiveness. Canada`s tariffs were no longer high enough to protect it from foreign competition, after seven rounds of GATF talks. What has prevented Canada from being competitive are the non-tariff barriers in foreign countries and the risk of other such barriers, particularly in the United States. Some Canadians believed that a comprehensive free trade agreement with the United States would irrevocably undermine Canada`s economic, cultural and political sovereignty.
Some would argue that this has not been done, since Canada has continued to protect its cultural industries (as provided for in the agreement) and has an independent foreign policy towards nations like Cuba. Over the next 45 years, Canada, and then the United States, tried to bring back the free trade agreement, but protectionism on either side blocked progress every time. An informal agreement, which was never ratified, came into being in 1911, after a customs war that took place in 1907. Canada began to implement a three-stage customs system, which strongly influenced the United States, which retaliated in 1909. In January 1911, an oral agreement was reached on a free trade agreement, which was written into a formal letter by Canadian delegates and then received a formal response from U.S. Foreign Minister Philander Knox. But the Liberal Party in Canada, which had negotiated the deal, was defeated in an election because of the proposed free trade agreement, and the pact was never implemented. Over the next two decades, a number of academic economists studied the impact of a free trade agreement between the two countries. Several of them – Ronald Wonnacott and Paul Wonnacott  and Richard G. Harris and David Cox – concluded that Canadian real GDP would increase significantly if U.S. and Canadian tariffs and other trade barriers were eliminated and that Canadian industry could therefore produce on a larger and more efficient scale. Other economists on the free trade side were John Whalley of the University of Western Ontario and Richard Lipsey of the C.
D. Howe Institute.  The Canada-United States of America Free Trade Agreement (CUSFTA), officially known as the Canada-United States Free Trade Agreement, was a trade agreement concluded by the negotiators for Canada and the United States on October 4, 1987 and signed on January 2 by the leaders of both countries. 1988. . . .