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Canada suggests a free trade agreement with the United States
This event is significant because it was the first proposition of a free trade agreement between Canada and the US. Once negotiated, this agreement will allow for the elimination or tariffs on most imports and exports which will grow the economy for both countries, This benefits Canada because we can import products we are lacking (eg. produce) and export products we have a surplus of (eg. oil) easier and cheaper. Tariff: A tax charged on goods when imported between different countries. -
Canada and the US invite Mexico to be apart of the free trade agreement
This will benefit Canada because we can import a wider variety of goods such as produce and products that are cheaper to produce in Mexico. The free trade agreement would also allow people to travel more freely between countries. This benefits Canada because labourers from Mexico can come to work in Canada to help build our economy in jobs we are lacking. -
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The leaders meet to discuss terms and conditions of NAFTA
The leaders took over a year to agree on terms of NAFTA because the agreement involves 3 countries which means there are alot of needs to consider so that NAFTA can be an advantage for each country. Some issues brought up in discussions included the wages for laborers, amount of tariffs eliminated on products, and which products to eliminate tariffs on. -
Leaders sign the official agreement
Canadian Prime Minister Brian Mulroney, Mexican President Carlos Salinas de Gortari, and American President George H.W. Bush agree on the conditions of NAFTA
Conditions include:
Tariffs are only removed on products manufactured in Canada, US, and Mexico
Each product being imported needs an official document called a Certificate of Origin filled out by the exporter to ensure quality of the product
All goods need a Country of Origin Marking to inform the purchaser where the product was produced. -
Additional side agreements about labour and the environment are discussed
Some issues included the wages for laborers, this is because of the low pay rate in Mexico. This means labourers in Mexico could work in Canada and get paid less that Canadians, because of this many jobs for Canadians could be lost. Another big concern was the environment, would Canadian and U.S. companies move to Mexico to take advantage of the counties law enforcement of environment standards? Or would Mexico pressure Canada and the U.S. to change their environmental standards? -
NAFTA comes into force
NAFTA quickly began to impact Canada positively. The US is one of Canada's biggest trading partners, because of this Canada's economy is benefited by the Canada-US trade. NAFTA has removed some barriers of trade which allows an increase in the amount of trades between Canada, US, and Mexico. In turn, this change has improved Canada's economy. Canadian investors are able to cross borders more freely due to NAFTA, and citizens are able to work in different countries where jobs are available. -
Trump Initiates NAFTA Renegotiations
While there is no specific date that President Donald Trump announced his concern of how NAFTA benefits the US, NAFTA has been in place for 24 years and has been an advantage for each country. So the idea that NAFTA could change is significant because the products and services included in the deal could be expanded to include public relations/telecommunications, ebooks, and digital music.This is significant because Canada will be able to import and export more goods and services without tariffs.
