Should Canada agree to free trade with this new global power? What is free trade? How does it benefit / hurt nations? What of the human rights record of China - is it wise for us to agree with a country that has different political opinions and morals?
http://www.theglobeandmail.com/news/politics/china-calls-for-free-trade-deal-with-canada-within-a-decade/article4561149/
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ReplyDeleteI do not think Canada should agree to free trade with China, especially since it is no longer a developing nation and has the 2nd biggest economy in the world (1), this might seem to be beneficial in the short term, but with all good things there could be some negative long term effects because of this.
To begin with, China has been known for not being so easily negotiated with these free trade agreements. Australia has been having similar talks to China about this since 2005. China also is a communist country so their views of free trade could be different than Canada's views on free trade as well.
In addition, I really think it is a bit hypocritical that Canada would want to negotiate free trade with China, an ally of Iran, seeing that Canada just cut ties with Iran fairly recently (2). This could cause problems with potential allies in the future. I could also see many Canadians being upset with this free trade agreement because China isn't that well known for having the best human rights or labour laws so dealing with a country like China right now might not be the greatest idea right now.
Lastly, I can see Canada potentially suffering from long term effects if the free trade was negotiated. Canada could more likely have its economy absorbed and depended on by China as China is fairly known for its cheap labour and cheap transportation cost; Canadian companies will most likely not be able to compete with the Chinese workers. Although, Canada exports many of its natural resources which could be a boost in the economy, I certainly do not think it is a good or equal trade-off.
1. http://www.therichest.org/world/worlds-largest-economies/
2. http://www.lfpress.com/2012/09/21/canada-leads-by-cutting-ties-with-rogue-iran
Other source(s):
http://news.nationalpost.com/2012/09/11/ottawa-eyeing-full-blown-free-trade-agreement-with-china/
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ReplyDeleteFree trade is an international trade left to its natural course without tariffs, quotas, or other restrictions. (1) Some benefits of free trade happen to be that it allows for an immediate increase in the potential market. By making it easier to export and import goods, manufacturers and retailers have greater access to both customers and goods for sale. Some cons of free trade are that is reduces a lot of jobs and can lead to a lot of people being unemployed. (2) I do disagree that Canada should participate in free trade with China in the sense that free trade isn’t necessarily fair for the richer country, which would be Canada. This is because with free trade, the lesser developed country in the agreement a.k.a China will receive the majority of the benefits at the expense of the more developed country. (3) Just last year (2011) Chinas human rights record worsened making it the most repressive year of the decade. (4) This being said I stress again that I disagree that Canada should agree to free trade with China after reading the cons for the developed country which is Canada and also the fact that we differ in political opinions and morals.
(1)https://www.google.ca/webhp?hl=en&tab=ww#hl=en&q=free+trade&tbs=dfn:1&tbo=u&sa=X&ei=00peUN75Aqmw0QGEy4Fo&ved=0CB0QkQ4&bav=on.2,or.r_gc.r_pw.r_qf.&fp=58f465a66cc1be8&biw=1366&bih=667
(2) (3)http://debate.yukozimo.com/pros-and-cons-of-free-trade/
(4) http://economictimes.indiatimes.com/news/news-by-industry/et-cetera/chinas-human-rights-record-worsened-in-2011-group/articleshow/12195161.cms
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ReplyDeleteThere are many nations that have free trade agreements, and it allows countries to trade with each other without any limits. Taxes, quotas and other burdens to trade are removed, as well as government subsidies and perks designed to benefit domestic partners. (1) While it can create problems for domestic producers because there are no more benefits specifically for them, it also encourages innovation and reduces prices.
As mentioned in the globe and mail article, a free trade agreement with china would help Canada to expand into asian markets. (2) As the asian markets are currently growing, and China is fast to becoming the worlds largest global market and getting on good trading terms with them would be a good idea for Canada's future. Natural resources are also Canada's main export and it would be a good idea to diversify our markets for exporting resources like crude oil for example. (3)
The problem of course comes first with china's own human rights and labour laws. The public may view this as a sort of endorsement on Canada's part saying 'we agree with what they're doing'. Also, it may not even be possible to have a true free trade agreement with chinas state-controlled economy. Some are also worried about what has truly sparked this future free trade agreement. A proposed takeover of Nexen, a canadian oil and gas producer, by a chinese state-owned company. (2) many are concerned that it could be an attempt to secure and control Canada's resources, although the chinese government has stated that it is not. (4)
I personally feel that while it would be a great idea for Canada to expand into asian markets, we should not be so quick to jump on board with the free trade agreement. Its obvious that the chinese economy will soon become the worlds largest, and while trade with china could greatly benefit Canada in the future, it would be a good idea if we could take a step back and think more about it. Canadian investors have continuous problems when dealing with chinese companies and this does not seem to improve any of that. We should also consider the human rights and labour laws that are non-existent within china. Do we really want to support that?
(1) http://www.wisegeek.com/what-are-free-trade-agreements.htm
(2)http://www.theglobeandmail.com/news/politics/china-calls-for-free-trade-deal-with-canada-within-a-decade/article4561149/
(3)http://www.cbc.ca/news/politics/story/2012/02/09/china-canada-trade.html
(4)http://www.digitaljournal.com/article/333364
I think a free trade agreement would encourage child labour and until China lines up their human rights policies with ours we should not be making any sort of agreements with them
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