Canada’s economy has become one with the U.S. over the past few decades.‚ In an effort to globalize exports, Canada is expected to develop a trade pact with the European Union.
Currently, the U.S. receives about 80 per cent of Canada’s exports.‚ Trade with the U.S. makes up around 60 percent of Canada’s entire GDP. That’s huge.
Canadian Prime Minister Stephen Harper and French President Nicolas Sarkozy, who is also president of the European Union, are expected to sign an agreement that will start negotiations to draft a trade pact between the two superpowers.
The pact, which is expected to be even more encompassing than NAFTA, could be reached by as early as 2009.‚ It could grow to include the U.S. after the ailing economy is stabilized.
I really like the idea of a Canada-EU trade agreement. The Canadian economy would strengthen.‚ Expanding exports with other countries allows for a more stable economy; Canada would no longer completely rely on the States.
Canadian exports to Europe would increase by almost 21 percent in just six years.
I am worried about one thing however.‚ The agreement, according to Maude Barlow of the Council of Canadians, could allow for the privatization of public companies, such as water utilities.‚ Compromising public companies would be problem, though I’m sure Harper will make sure that public companies are protected, to a degree.
At least I hope he will.‚ Harper is sort of an inconsistent leader.
Canada is sort of taking a step back from their relationship with the U.S. here.‚ The American economy is severely troubled and Canada is exploring it’s options on a world stage.‚ They want to expand their global economic input.
They want to make sure they don’t develop economic problems similar to America’s.‚ That is a possibility when around 60 percent of your entire GDP comes from trade with the States.
I don’t fault Canada for doing this, it’s a step in the right direction for them and a very beneficial step for the EU.
At least it will be if the agreement is drafted well.