Relevant Trade Agreements And Benefits To Be Yield From Agreements

North American Free Trade Agreement (NAFTA)

North American Free Trade Agreement launched in January 1994, among the Canada, United states and Mexican to remove tariff barriers which helps to raise economic growth, the standard of living and gross domestic product of each country.

Advantages of North American Free Trade Agreement (NAFTA):

1. This agreement helps to boost the economic growth of each country because of increase in exports which leads to job opportunities in each country.
2. It also helps reduce in prices of import products because of it the risk of inflation decreases.
3. NAFTA also helps to increase foreign direct investment of way by providing more opportunities to develop and markets.
4. This agreement helps to reduce government spending in term of allowing more competition and lower cost bids

Canada-United States Smart Boarder Declaration

In this agreement, Canada and USA signed a declaration in term of improving boarder security, transport facilities and law enforcement co-operation between both countries.

Benefits of Canada-United States Smart Boarder Declaration:

1. The agreement helps governments to make framework regarding the border crossing which helps to reduce terrorist attacks.
2. It also helps to minimize the time of delivery s and costs that is occur at time of landing of imports through free and secure trade (FAST).

Security and Prosperity Partnership

This partnership is established between the leaders of Canada, Unites states and Mexico in March, 2005 regarding the increase in security and prosperity in each country through co-operation and information sharing.

Benefits of Security and Prosperity Partnership:

1. This partnership helps government authorities to help problems quickly and effectively.
2. It also helps to protect environment issues by developing framework for energy efficiently.
3. Co-operation in long term plans helps to develop the technology smarter and safety.

Main Controversies associated with North American Free Trade Agreement (NAFTA)

1. NAFTA has overarching rules that could stop local government to design laws, rules and regulations to protect the public interest.
2. NAFTA promote privatisation and becomes the reason of degradation of environment resources and health standards.
3. Due to NAFTA, United States loss jobs in field of manufacturing because of cheaper labour cost in Mexico. As a result of it, many manufacturing companies of United States moved their large portion of production to Mexico.
4. NAFTA becomes the reason of suppression of wages. Organisation gave the choice to employees between joining organisation without union support or loose job.

Potential impact of most controversies issues on Canadian businesses

1. Canada has wide range of natural resources and it take advantages from resources but after NAFTA came in effect America also take the advantages of Canada’s resources at high level that becomes the reason of destroy of natural resources.
2. NAFTA becomes the reason of environment damages in terms of large amount of toxic waste due to less effective environmental policies and laws. It also increases the movement of traffic cross the boarder which becomes the reason of pollution that raise the temperatures of global warming.