The Historic Agreement Between Canada and Europe

by gagnonpamela on October 18, 2013 - 9:10pm

In the article Canada, EU unveil 'historic' free-trade agreement for The Globe and Mail, Paul Waldie explains that the free-trade agreement would be beneficial for both Europe and Canada. Mr. Harper adds that it is surely one of the important good deals they have made in the past few years. This agreement is about removing many tariff rates, trade between foreign countries and encourage the labour movement. This means that 98 per cent of the tariffs in Canada and Europe will be completely abolished. Since this agreement has to be approved by the 28 Europe members and by every territory and provinces in Canada, this approval from every territory could take about 2 years according to Mr. Barroso and Mr. Harper. They also have to publish it in 24 different languages for the different territories. Although Mr. Barroso and Mr. Harper acknowledge that there would be some disagreements to this deal because of the disadvantages for a few people, they both believe that the advantages have a bigger impact; therefore, there would be more chances that this deal will be adopted two years from now. A lot of people would benefit from the free-trade agreement because many of the workers will make more money and the consumers will make better investment since the cost of thousands of products from Europe would be lower for Canadians to pay. Also, some parts of the Canadian economy like the cheese market and the generic drugs will be affected. Dairy farmers will make more profit from exporting their good cheese quality to the Europe. The generic drugs is now affected in a good way because they have no competition but in two years they will no longer be protected and therefore they will have more competition because of the importation from Europe of other drug brands.

 

I believe that this trade-agreement deal is beneficial for a lot of people according to this article. I think that the elimination of 98 per cent of the tariffs is also very advantageous for many and also, the profits from selling things and paying less for Europe products trading is excellent. Of course, for any agreement, some people will always disagree, but we cannot always have the same opinion. At the end of the day, decisions have to be made by the majority of people. If there are more advantages than disadvantages to this deal, I think it is worth to give it a try.

Comments

I also think this is good news for both parties. As you have mentioned some people will be affected negatively for example in Canada it will be the milk and cheese produces which will lose a big chuck of its market. (The deal will increase the imports of cheese by two times its original amount.) which will make it hard for local cheese producers to compete, while the losers in the EU would be the beef produces, since we would be exporting large amounts of beef for their market, affecting the local companies. To make the deal beneficial to everyone, the losing parties should be given compensation for any loses. Apart from this i think it will affect us in a positive way for the prices of cheese but could result in an increase in the price of beef since there is greater demand.

About the author