Download Free Trade vs National Policy

National Policy vs Free Trade
National Policy
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An economic policy
implemented in Canada at
Confederation.
The policy put high tariffs
(taxes) on foreign made
goods to protect the
Canadian manufacturing
industry.
It was contrived in response
to the thought that the
limited population of Canada
could not compete with the
larger and heavily
industrialized nations of the
United States and Great
Britain.
Free Trade Agreement
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An economic policy only
recently adopted by Canada
whereby goods are traded
between certain countries
without tariffs.
It provides a level playing
field for national goods and
foreign goods.
It creates a more
international and
competitive market.
It allows for the free flow of
labor and capital between
different countries.
National Policy in Canada
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Soon after Confederation,
Canada adopted the National
Policy under its first Prime
Minister, Sir John A
MacDonald, in 1876.
It was popular with the
Canadian people since it was
seen as protecting Canadian
industry and giving people at
home priority for jobs.
It was not accepted
unanimously, however. Many
saw it as stunting potential
growth and economic isolation.
Free Trade in Canada
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For most of its history Canada
put high tariffs on foreign made
goods as per its National Policy.
Free Trade, however, was
proposed to North America by
Mexican President Carlos
Salinas, American President
George Bush, and Canadian
Prime Minister Brian Mulroney
in October of 1992.
It was formalized on January
1st, 1994 as the North American
Free Trade Agreement
(NAFTA).
It meant no more tariffs on
most foreign goods.
Advocates of Free Trade
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National Policy was challenged
by the Conservatives in 1920
but had little success.
Liberal Prime Minister
William Lyon Mackenzie King
began to soften the
protectionist policies of
National Policy and adopted
more of a Free Trade outlook
with the United States.
The North American Free
Trade Agreement (NAFTA)
was finally implemented by
Brian Mulroney in the early
90s.
Similarities
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Both are economic
policies that have been
used by Canada.
Both create economic
competition in their
respective areas.
Both were at first
supported by both major
Political Parties and both
later tried to dismantle it,
first under Mackenzie
King and finally under
Mulroney.
Differences
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Free trade focuses on an
international market while
National Policy focuses on a
national market.
Free trade is popular with
corporations while National
Policy is popular with the
common worker.
Free trade encourages the
movement of money and labor
between countries while
National Policy encourages
money and labor to stay at
home.
Free Trade opens up the
international market to cheap
labor whereas National Policy
protects workers’ rights.
Benefits of National Policy
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Protects our own
industries and our own
citizens.
It protects small
businesses.
Prevents cheaply made
foreign products from
getting an upper hand on
homemade goods.
Provided the solid base for
Canada to establish its
industries at its inception.
Is thought to provide a
higher standard of living.
Benefits of Free Trade
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Allows global trade to flourish.
Creates a more dynamic and
competitive economy.
Encourages big business.
Cheaply made products for
consumers lowers cost of living.
It gives consumers control over
their economy by giving them
uninhibited choice of products.
It reduces international poverty
by allowing third world
countries to compete and
encourages globalization.
Canadian Policy Reflections
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We should keep our policy of Free Trade.
Canada is a country with a massive amount of natural resources
and a tiny population. Exports account for nearly a third of our
GDP which at the moment is $1.023 trillion.
If we tax foreign goods our exports will not be well received. This
would negatively impact our economy.
Allowing third world countries to compete will lower international
poverty. For example, high tariffs on African-made goods in
Europe forces many African countries into abject poverty.
Most third world countries have little else to offer the
international market other than cheap labor, so they don’t really
benefit from tariffs at all.
Less poverty in the world means less war and strife.
Free trade would also allow easier access to resources some
countries do not naturally have, also negating many reasons for
war.
References
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http://en.wikipedia.org/wiki/Main_Page
http://www.cia.gov/cia/publications/fact
book/
http://www.answers.com/topic/canadau-s-free-trade-agreement
http://www.canadianheritage.org/reprod
uctions/23271.htm
http://www.teilhardtech.com/News/
Free Trade is the Only Way!