Positioned for the World's Leading Economy

Within the next few years Canada could well become the freest trading nation on the face of the Earth.  Roughly 75% of Canada’s trade is already free, thanks to the Canadian – American free trade agreement and its successor, NAFTA.  And that as one shall see – is just the beginning of what many predict of Canada’s future.

European Union deal, called the Comprehensive Economic and Trade Agreement – CETA, is at the top of the list, which is at the top of the list, with negotiations predicted to wrap up within the next four months.  About 25% of Canadian trade with Europe has been in place in the past.  Yet many forecast that this agreement was the beginning of what is considered a historical launch of several free trade agreements with countries from around the world.  At the moment Canada would join a select group of countries which would include, Chile, Columbia, Israel, Jordan, Mexico, Morocco, Peru – with guaranteed access to the two richest markets in the world.  South Koreas formally entered into the free trade agreement with the United States this week, and are awaiting ratifications of a similar agreement with the Europe.  That would create a situation where Korea has beat Canada to the punch.  Which if a few sources are right, a decision within Canada’s favor has already been reached.

The CETA would bring many benefits on s own, not least of which would be to force the provinces in Canada to stop discrimination against foreign contractors– with any luck they might stop doing so against each other.  This would be a positive outcome.  The ability for Canada to serve both markets, tariff free, is an obvious incentive to locate a plant in Canada, making the country a “hub” to the spokes of an economic wheel.  Yet that is not likely to last for too long.  As what Canada would lose in location of advantages we would gain from the opportunities to rationalize production across what would become one singer market over a billion of people.  Meanwhile, Canada are also well into discussions on a free trade agreement with India.  We don’t do a great deal of trade at the moment only  $ 2.5 billion/per annum, yet again, only the Koreans, who already have a treaty with India, would be in Canada’s league.  Yet here as well, there is a trade agreement which is nearing completion which is called the Canada South Korea Free Trade agreement which would grant Canada and South Korea the first, second, third, and forth ties to the richest markets in the world.  That leaves among the big for which is China.  Prime Minister Harper has agreed to joint study with China – if it leads to a negotiation which renders promise – it more than likely shall be another free trade agreement only if it’s feasible.  Negotiations are now within the advance stage, for the first time in history Canada shall replace a 10 country group which jointly trade with China – called the Trans Pacific Partnership, which include Australia, New Zealand, United States, and Japan whom now have raised the bar as they don’t wish to loose this economic partnership.

So there is every prospect of Canada is literally nearing the end of a fiscal plan in some cases some GOPs’ have seemingly been sitting idle while Canada has been replacing other countries with a more feasible plan over the last two years.  Only two other countries are nearly close to Canada as of today’s date.  Chile has a free trade agreement with the United States, the EU, Japan, China and Mexico, but not India or Koreas.  Singapore has agreements with the US, Japan, India, China and Korea – yet not the European Union.

But stay tuned, as Singapore and the EU are in negotiations, which may close at the end of this month.  South Korea, Chile, and Singapore are well known as steady fast negotiators.  And Canada?  It wasn’t so long ago that this country accepted protectionism as a policy which was imposed by it’s largest bilateral trading partner.  A process really which was very unlike Canada's policies and nature.  it was called which was very apart of the countries identity – which took way in the late 1980s when Canada committed to a free trade with United Sates, yet having made that fundamental turn outwards rather than thinking inwards Canada came to find each additional step along the liberalized trade path less arduous.  In addition to those countries mentioned, Canada as signed agreements with Honduras, Panama, Jordan, Colombia, Peru, Costa Rica and Israel and have as of this date several more in the finalities of negotiations.

With so much of trade already free, between 90 to 95% will be achieved.  Mind you Canada's economic agenda was not crafted only within the last two years, it has come to be over several with the government taking upmost measures to ensure the country during the last 15 years kept economically sound internally as well as internationally.  If Canada’s economic free trade agenda of the last two years come into being.  In the past the concern was that trade agreements would lead to trade diversions rather than trade creation.  Where the ideology of some countries was to induce trade between countries on the basis of preferential arrangements rather than economic comparative advantages.  What then was over looked was this dynamic of competitive liberalization and how it became mainstream.  This only led to each country scrambling to join trade agreements out of desperation.

Certainly looking at the past of how some rounds of negotiations were made at the World Trade Organization, it would be hard to argeue against the merits of multilateralism.  Yet Canada is in position and prepared to take that place which many concern as the worlds leading trade player.  I would surmise that Canada has immerged as well as it has only due to the time it has spent in well versed group taking into regard this history of it’s trade and economic policies and decisions of the past.  Taking the time to understand the worlds’ economic processes, as well as the history of how it was achieved and much like when a lease comes up for renewal – seemingly Canada’s GOP has not only studied the economies of countries around the world – it come to a point where rather than being forced into economic agreement which within the past have not always been free.  While other countries governments have not place economics at the top of the platform, or if they have bent the contracts of which were that which were called, "free", as in any free trade agreement there are concessions made and the final agreement is without tariffs, or the case has been a country that is imperialistic or in crisis a managerial style.  Where Canada has spent the last year creating alliances where agreements are at the end of their term – Canada more than likely shall finalized a historical multilateral free trade agreement with several countries by way of a creed and understanding goes along with the territories.  I would assume that Canada’s government was only able to do this as it’s one of the few countries within the world right now that does not owe money rather has a surplus of the highest, is in touch with the international world, and after the last two years there has been more visitations and negotiations with economically plausible countries. The forecast by most all economists is that Canada shall be the world’s largest and leading trading partner within the world.  There are many reasons for this.  What I surmise is that Canada has had the time to create an economic draft plan and has spent the last few years mapping out where she wishes to sell her natural resources, as well as not imposing an agreement on another country – but rendering an understanding.  There is something to be said in how Canada’s government has been working over the last ten years. 

But most of all it’s fascinating to see how fast Canada is growing economically within the last two years.