POL101Y1 Lecture Notes - Lecture 8: Province Of Canada, Environment And Climate Change Canada, North American Free Trade Agreement
Document Summary
Free trade agreements: multi vs bi-lateral trades. Reasons to enter free trade: agreement to allow goods pass without trade barriers, expand potential size of market for goods. Downsides: makes many protective protective practices illegal, makes it illegal to give preferential treatment to locally based companies, labor unions often oppose, as jobs are now accessible to people outside of local areaw. Nafta: united canada, usa, mexico, canada, usa. Increase in agriculture (export rate higher than import rate) Lost many manufacturing jobs (shift to mexico for cheaper local: chapter 11 labor rates, investor state dispute settlement, protects rights of investors from other countries (rights are governed by rules of nafta) Protect against nationalization or expropriation (when government targets and seizes goods) Mexico expropriated oil fields, thought of as unreliable trade partner; chapter 11 guarantees safety and continued trade: gives standing to corporations or investors to bring claims against government for regulation or laws that violate free trade.
