Free Trade Agreement and Its Affect on Canadian Business Essay

Free Trade Agreement and Its Affect on Canadian Business With the coming of the Free Trade Agreement (FTA) there have been very serious implications for Canadian business and for that matter, Canada as a whole. Many aspects of the previous economic climate have changed such as the reduction or eliminatation of tariffs and the restrictions on subsidies to name only a few. There has been much heated debate on the pros and cons of this deal: whether Canada will prosper or become the 51st. American state. This paper will not take this approach to the issue of whether or not it is a wise agreement, but will look at what business can do to better itself with the existing FTA. If Canadian business is to survive and prosper in this radically changed North American and Global atmosphere of easier trading, then it must adapt. Some of the main areas that will have to be addressed is the need for more productive and efficient operations, a new focus by business on the new trading reality, and a change in policies by Government to enable Canada to function better with the FTA. The FTA stands to alter Canadian business which has grown rather relaxed and inefficient behind walls of tarrifs. While these may have initially spurred industry, they have after time encouraged complacency. With these rapidly disappearing walls, business will have to become "lean and mean" in order to compete in a very competitive global market. Looking at the present state of affairs our status in research and development (R&D), labour costs and expansion, there is much that must be done. Compared to the other industrialized western nations we lag far behind in nearly all areas. Take for example R&D. In 1990 Canada spe... ... Cameron, Duncan. The Free Trade Papers. James Lorimor & Company, Publishers, Toronto, 1986 The Canada and US FTA (Complete Doccument), External affairs Canada, Ottawa Laxer, James. Leap of Faith: Free Rade and the Future of Canada. Hurtig Publishers, Edmonton, 1986 The Case Against the Critics of Free Trade. John Miora. Finanical Post, Feb. 8, 1986 Brave New World. Marc Tait. Maclean's, Jan. 9, 1989 Firms going continental. Jennifer Sachsa. Globe and Mail, June 12, 1990 Roundtable: The Canada-US FTA. Fred Swift. Globe and Mail. August 12, 1988 End Notes 1 Firms going continental. Jennifer Sachsa. Globe and Mail, June 12, 1990 2 Brave New World. Marc Tait. Maclean's, Jan. 9, 1989 3 Firms going continental. Jenniger Sachsa. Globe and Mail, June 12, 1990 4 Roundtable: The Canada-US FTA. Fred Swift. Globe and Mail. August 12, 1988