Canada And Us Free Trade Agreement

The Canada-U.S. Free Trade Agreement (CUSFTA) (CUSFTA) was a Canada-U.S. trade agreement, a trade agreement between Canada and the United States of America, a trade agreement concluded by negotiators for Canada and the United States on October 4, 1987 and signed by the heads of state and government of both countries on January 2. , 1988. The agreement gradually removed a wide range of trade restrictions over a ten-year period and resulted in a significant increase in cross-border trade as an improvement over the last replaced trade agreement. [1] With Mexico`s accession in 1994, the free trade agreement was replaced by the French-language North American Free Trade Agreement (NAFTA): Tratado de Libre Comercio de América del Norte (TLCAN). [2] The phenomenon of “cross-border shopping,” in which Canadians would make day trips to U.S. border towns to use duty-free goods and a high Canadian dollar, caused a mini-boom for these cities. The loss of many Canadian jobs, particularly in Ontario`s manufacturing industry during the recession of the early 1990s, was attributed (fairly or not) to the free trade agreement.

Supporting a 21st century economy through new measures to protect intellectual property in the United States and to secure trade opportunities for services in the United States. U.S. President Ronald Reagan welcomed the Canadian initiative and the U.S. Congress gave the President the power to sign a free trade agreement with Canada, subject to congressional revision until October 5, 1987. In May 1986, Canadian and U.S. negotiators began developing a trade agreement. The Canadian team was led by former Deputy Finance Minister Simon Reisman and Peter O. Murphy, former U.S. Deputy Trade Representative in Geneva. Others feared that free trade would have negative effects because they feared capital flight and job insecurity due to international relocations, and that closer economic relations with the southern giant could also erode Canadian sovereignty. Opponents included Mel Watkins of the University of Toronto and David Crane of the Toronto Star, one of Canada`s leading newspapers.

The agreement has failed to liberalize trade in some areas, particularly the ongoing dispute over coniferous timber. Issues such as trade in minerals, freshwater and conifer wood remain controversial. However, between the mid and late 1990s, the Canadian dollar fell to a record high against the U.S. dollar. Cheaper Canadian primary products, such as wood and oil, could be purchased duty-free by the Americans, and Hollywood studios sent their crews to make many films in Canada because of the cheap Canadian dollar (see Runaway Production and Hollywood North).