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something that surprised me the most about this topic is how much free trade and protectionism have a drastic effect on the topic. Before this research I had little to no knowledge about this topic and what the topic entailed. After all of this research I feel very knowledgeable and confident discussing the topic. As I am currently a student nurse, I will soon be done
school and be practicing as a practical nurse. This topic will impact my career as free trade and protectionism dictate the equal allocation of resources. If I were to pass on the knowledge to someone I know I would recommend that they understand how much the free trade and protectionism direct affect the economy and the allocation of resources.

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                                                                                                                                               REFLECTIVE QUESTIONS 

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                                                                                                                                               REFLECTIVE QUESTIONS 

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I have chosen to share this photo because it outlines some very important methods of protectionism. the picture outlines methods that inspired the rising of protectionism. I feel that this picture allows us to understand the core of where protectionism came form.

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I have chosen to provide this picture to share as it offers the pros and cons of the free trade agreement in a simple and easy to view format. The photo explains three cons as well as three pros to the free trade agreement.

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Here, I have provided a link to the website where the photo was taken from

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Trade protectionism is a policy that protects domestic industries from unfair competition from foreign ones. The four primary tools are tariffs, subsidies, quotas, and currency manipulation.

Protectionism is a politically motivated defensive measure. In the short run, it works. But it is very destructive in the long term. It makes the country and its industries less competitive in international trade.

The most common protectionist strategy is to enact tariffs that tax imports. That immediately raises the price of imported goods. They become less competitive when compared to local goods. This method works best for countries with a lot of imports, such as the United States.

The chart below shows the share of tariffs collected on U.S. imports since 1790. Tariffs hit a record 57.3% in 1830 due to the Tariff of Abominations. They hit a record low in 2008 at 1.2%.

Protectionism fell out of favor after the Smoot-Hawley Tariff of 1930. It was designed to protect farmers from agricultural imports from Europe. U.S. farmers were already suffering from the Dust Bowl. European farmers were ramping up production after the destruction of World War I. But Congress added many other tariffs. Other countries retaliated. The resultant trade war restricted global trade. It was one reason for the extended severity of the Great Depression.

Governments also frequently subsidize local industries to help them compete in the global market. Subsidies come in the form of tax credits or direct payments. The most commonly used are farm subsidies. That allows producers to lower the price of local goods and services. This makes the products cheaper even when shipped overseas. Subsidies work even better than tariffs. This method works best for countries that rely mainly on exports.

But sometimes subsidies can have the opposite effect. The Agricultural Adjustment Act of 1933 allowed the government to pay farmers not to grow crops or livestock. The government wanted to control supply and increase prices. Farmers could also let their fields rest and regain nutrients due to overproduction. It helped the agriculture industry but raised food costs during the Depression.

A third method is to impose quotas on imported goods. This method is more effective than the first two. No matter how low a foreign country sets the price through subsidies, it can't ship more goods.

Most textbooks omit the fourth type of trade protectionism because it is subtle. It is a deliberate attempt by a country to lower its currency value. This would make its exports cheaper and more competitive. This method can result in retaliation and start a currency war. One way countries can lower their currency's value through a fixed exchange rate, like China's yuan. Another way is by creating so much national debt that it has the same effect. Some countries criticize the U.S. government for doing that, creating a U.S. dollar decline.

If a country is trying to grow strong in a new industry, tariffs will protect it from foreign competitors. That gives the new industry's companies time to develop their own competitive advantages.

Protectionism also temporarily creates jobs for domestic workers. The protection of tariffs, quotas, or subsidies allows domestic companies to hire locally. This benefit ends once other countries retaliate by erecting their own protectionism.

In the long term, trade protectionism weakens the industry. Without competition, companies within the industry have no need to innovate. Eventually, the domestic product will decline in quality and be more expensive than what foreign competitors produce.

Job outsourcing is a result of declining U.S. competitiveness. Competition has declined from decades of the United States not investing in education. This is particularly true for high-tech, engineering, and science. Increased trade opens new markets for businesses to sell their products. The Peterson Institute for International Economics estimates that ending all trade barriers would increase U.S. income by $500 billion.

Increasing U.S. protectionism will further slow economic growth. It would cause more layoffs, not fewer. If the United States closes its borders, other countries will do the same. This could cause layoffs among the 12 million U.S. workers who owe their jobs to exports.

Since Smoot-Hawley, most countries have been antiprotectionist. They realize protectionism lowers international trade for everyone. One of the strongest tools in antiprotectionism is the free trade agreement. It reduces or eliminates tariffs and quotas between trading partners.

Also in the running for the world's largest trade agreement would have been the Transatlantic Trade and Investment Partnership. It was between the European Union and the United States. But the Trump administration has not pursued it.

In a global economy, protectionism is damaging for everyone. Trump's "America First" economic policy could hurt the U.S. economy in the long run. Tariff imposition on imports from China, Canada, EU, Mexico, and India have triggered retaliatory tariffs. A trade war with these large economies leads to serious consequences on U.S. exporters and labor force.

But the immediate losers will be the global consumers. They will be forced to pay inflated prices. High costs could create inflation around the world.

Free trade agreements could advance world economy. Although unfavorable to uncompetitive domestic industries, these boost local industries that can produce at better economies of scale than those of other nations.

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Why Protectionism Feels So Good but Is So Wrong

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Trade protectionism is a policy that protects domestic industries from unfair competition from foreign ones. The four primary tools are tariffs, subsidies, quotas, and currency manipulation. Protectionism is a politically motivated defensive measure. In the short run, it works. But it is very destructive in the long term.

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Here, I have provided a link to the website where the photo above was taken from.

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Free trade agreements are treaties that regulate the tariffs, taxes, and duties that countries impose on their imports and exports. The most well-known U.S. regional trade agreement is the United States-Mexico-Canada Agreement (USMCA) which replaced the North America Free Trade Agreement (NAFTA) effective July 1, 2020.

The advantages and disadvantages of free trade agreements affect jobs, business growth, and living standards.

Key Takeaways

Advantages of Free Trade Agreements

Free trade agreements are designed to increase trade between two or more countries. Increased international trade has the following six main advantages.

Increased Economic Growth

In 2003, the U.S. International Trade Commission estimated that NAFTA could increase U.S. economic growth by 0.1% to 0.5% per year. The USMCA is a modern trade agreement that recognizes the influence of technology on economies. It changed many original NAFTA rules and processes but also kept others intact.

According to a 2019 report, USMCA is expected to raise GDP by $68.2 billion (0.35%) and employment by 176,000 jobs (0.12%), with a likely positive impact on all broad industry sectors in its first five years.

More Dynamic Business Climate

Without free trade agreements, countries often protected their domestic industries and businesses. This protection often made them stagnant and non-competitive on the global market. With the protection removed, they became motivated to become true global competitors.

Note

Lower Government Spending

Many governments subsidize local industries. After the trade agreement removes subsidies, those funds can be put to better use.

Industry Expertise

Global companies have more expertise than domestic companies to develop local resources. That's especially true in mining, oil drilling, and manufacturing. Free trade agreements allow global firms access to these business opportunities. When the multinationals partner with local firms to develop the resources, they train them in the best practices. That gives local firms access to these new methods.

Technology Transfer

Local companies also receive access to the latest technologies from their multinational partners. As local economies grow, so do job opportunities. Multinational companies provide job training to local employees.

Disadvantages of Free Trade Agreements

The biggest criticism of free trade agreements is that they are responsible for job outsourcing. Here are some of the primary disadvantages.

Increased Job Outsourcing

Why does this happen? Reducing tariffs on imports allows companies to expand to other countries. Without tariffs, imports from countries with a low cost of living cost less. It makes it difficult for U.S. companies in those same industries to compete, so they may reduce their workforce. Many U.S. manufacturing industries did lay off workers as a result of NAFTA. ​​​​One of the biggest criticisms of NAFTA is that it sent jobs to Mexico.

The USMCA sought to address and correct these criticisms, requiring-for the first time in a trade agreement-that 40% to 45% of North American auto content be made by workers earning at least $16 per hour.

Theft of Intellectual Property

Many developing countries don't have laws to protect patents, inventions, and new processes. The laws they do have aren't always strictly enforced. As a result, corporations often have their ideas stolen. They must then compete with lower-priced domestic knock-offs.

Crowding Out Domestic Industries

Many emerging markets are traditional economies that rely on farming for most employment. These small family farms can't compete with subsidized agri-businesses in developed countries. As a result, they lose their farms and must look for work in the cities. This aggravates unemployment, crime, and poverty.

Poor Working Conditions

Multinational companies may outsource jobs to emerging market countries without adequate labor protections. As a result, women and children are often subjected to grueling factory jobs in sub-standard conditions.

Reduced Tax Revenue

Many smaller countries struggle to replace revenue lost from import tariffs and fees.

Degradation of Natural Resources

Emerging market countries often don't have many environmental protections. Free trade leads to the depletion of timber, minerals, and other natural resources. Deforestation and strip mining reduce their jungles and fields to wastelands.

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How To Create Effective Trade Agreements

Free trade agreements are designed to combat trade protectionism, which has its own downsides. Trade protectionism produces high tariffs and only protects domestic industries in the short term. In the long term, global corporations will hire the cheapest workers wherever they are in the world to make higher profits.

A better solution than protectionism is the inclusion of regulations within trade agreements that protect against the disadvantages.

Note

Developed economies can reduce their agribusiness subsidies, keeping emerging market farmers in business. They can help local farmers develop sustainable practices. They can then market them as such to consumers who value that.

Countries can insist that foreign companies build local factories as part of the agreement. They can require these companies to share technology and train local workers.

Frequently Asked Questions (FAQs)

What was the purpose of NAFTA?

What is the difference between free trade and fair trade?

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Free trade agreements are treaties that regulate the tariffs, taxes, and duties that countries impose on their imports and exports. The most well-known U.S. regional trade agreement is the United States-Mexico-Canada Agreement (USMCA) which replaced the North America Free Trade Agreement (NAFTA) effective July 1, 2020.

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Hello and welcome to my research
Throughout this padlet presentation you will be provided will information on all different aspects of free trade and protectionism. I have included information from all points of view to provide you with the opportunity to form your own views surrounding free trading and protectionism.
All the best,
Julia Johnson

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      IMAGES FOR FREE TRADE AND PROTECTIONISM 

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      IMAGES FOR FREE TRADE AND PROTECTIONISM 

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Arguments Against Protectionism  (For Free Trade)  |  International Economics

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Free trade vs protectionism has been a standing debate for a very long time and I imagine it will continue to be a common topic of debate for a long time to come. While watching a video about arguments against  protectionism I learned some things that free trade can offer for the economy and its consumers. Free trade may lower prices to consumers and producers of the inboards that they own. Free trade would also provide consumers with more options. Free trade would lead to a fair allocation of the world resources and lastly free trade may encourage and develop economical growth.
I chose to share this video because it does a very great job at showing the advantages that free trade has to offer, in a simple and understandable way. As arguments against protectionism is really the same thing as arguments supporting free trade, this video encompasses this greatly. I have to say that after this video I am very interested in the way that free trade can help all kinds of people, goods, resources as well as from an economical point of view.

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When speaking about the arguments for protectionism, there are two main questions to be focused on. These questions address why countries do not trade freely and why countries protect their imports. The website goes through detailed arguments that support protectionism for the economy. In summary these points are; protecting domestic employment, protecting the economy from low payed labor, protection of an infant industry, avoidance of over-specialization, some strategic reasoning, prevention of dumping,  the protection of product standards, the rise of government revenue and the correct balance of payments deficit.
I chose to include this video because it provides the viewer with detailed facts to support the topic. Although I may not agree with protectionism the creator did a good job at showing the format in a non biased way. From this presentation I have learned important details about protectionism and what it has to offer the consumers such as protecting domestic employment. I do have to say that I was not at all surprised that protectionism raises government revenue and this is probably why so many governing people support protectionism.

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Arguments For Protectionism (Against Free Trade)  |  International Economics

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VIDEOS ON FREE TRADE AND PROTECTIONISM

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When speaking of free trade and protectionism they are two very different topics but at the same time are very similar. There are many debates on whether to encourage free trade which means encourage imports and allow relocation. When speaking of protectionism, we speak of high import tariffs on importing and the discouragement of relocation. In the early day’s mercantilism is the same thing that we call protectionism today. Adam smith stated that the best way for any country to grow wealthy was not to try to make everything itself as a country could not do greatly in every aspect of its economy. Smith noticed that different country’s had different strengths in different areas. Smith implied that it was best to trade with countries for their good in which they specialized, in return for the other countries specialized goods. Free trade has shown in the early days to have a positive impact on the economy
Something I found very interesting about this video is how much free trade can actually help our economy. I was also surprised to learn that protectionism is in fact bad for the economy and comes with economical restrictions. I chose to share this video because it provides visual explanation that really helps to truly understand the difference between protectionism and free trade.

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How to Enrich a Country: Free Trade or Protectionism?

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WEBSITES ON FREE TRADE AND PROTECTIONISM

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Free trade takes place between countries when in the circumstance there are no barriers to trade in place by governments. This means products can flow freely through one country to another country with no restrictions put in place by government. The definition of protectionism is “the use of tariffs, quotas, subsides or administrative barriers aimed at making domestic producers more competitive with foreign producers by limiting the quantity of imports into the nation”.  There are also key concepts that are important to understand when talking about protectionism. A tariff are taxes placed on imported items, services, or recourses. A tariff increases the total cost of the good which reduces the supply and makes the goods a higher cost for the consumers. A protective subsidy is the payment of money from the government to domestic producers which is aimed to increase domestic consumption. When referring to a quota it is important that we understand what the true meaning is. A quota is when there is a physical limit placed on a good, service, or recourse that may be imported. In the end a quota will cause a shortage in the imports, which drastically drives up the domestic price and then causes domestic producers to increase their supply.
I found this lesson very interesting. It really put into perspective how much the government inflates the prices of things in a deliberate manner. It really made me start to realize how much this world that we live in only thrives for money and not much more. In the end of protectionism and all of its interconnected components, misallocation of resources leads to a total loss of welfare.

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Protectionism refers to government policies that shield domestic production from foreign competition. this can be shown in such an example; a Canadian tariff has 15% on a car that has a cost of 5000 in another country means that a tax of 750 will be assumed to the car when it is imported to Canada. The Canadian price now being $5750 means that Canadian producer of similar vehicles who can sustain a profitable price of $5750, but not $5000, will be able to compete with imports in the Canadian market. For example, the producers of cars in Canada who depend on protectionism cannot export, since their costs are above world costs. The speak of protectionism has made many attempts to find a respectful response to the economic argument. Discussion if protectionism would be greater if people would bring up that although it involves economic costs, there tend to be outweighed by non economic benefits.
This information was all new to me and I found it to be quite an interesting topic. It surprised me to learn that some protectionist policies may confer benefits that will not be brought in the marketplace. Another aspect that I would to be very interesting was how the site brought up a third explanation for protectionism. The site raised awareness to the possibility supporting protectionism suggests deep psychological or biological imperative which compels people to favor the domestic producers and protect production in the their home area.

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Trade Protectionism in Canada: Tools Used by Government 

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Trade Protectionism in Canada: Tools Used by Government 

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Canada’s Special Import Measures Act has been designed to provide protection to the Canadian producers who are beings harmed or injured related to the dumping of goods imported into Canada. SIMA has been in the works of bringing its plan to the FTA, NAFTA and WTO into an agreement relating to the anti-dumping duty and subsides. This duty comes into place when Canadians are buying products at a much lower cost compared to the comparable product in another country, in this case the anti-dumping duty would apply. Countervailing duty is applied that a producer is being financially backed to sell that product at a cost lower than the Canadian market value.
I chose this to include because this site does an excellent job at breaking down protectionism in Canada. Before looking into this website, I was not aware of what anti-dumping duty and countervailing duty referred to. I also find it particularly interesting how a if a Canadian producer suspects that competing goods are being brought from another country and are being dumped, this producer can make a complaint thought the CBSA.

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This website explores three major Canadian enforced trade policies in Canada's economical history. Through this information the website explores how the Canada-US auto pacts is and was a transformation trade agreement that severed Canada with endless positive benefits for Canadians and Canadian producers. In addition to this there was significant labor productivity gain among the US-owned Canadian plants following the agreement made shows that the US firms saw higher profits as well as the US consumers likely saw lower product prices.
I chose to use this website because it offers important information from the 1900’s. Information on this website that I found particularly interesting a new to me was regarding Canada Free trade era. During this time the government was seeking new ways to pursue further trade liberalization. Considering all aspects, the Macdonald commission determined that the most optimal way to encourage prosperity was to pursuit free trade and secure access to the US market.

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This website is from the Government of Canada and discus’s Canada’s 2019 trade policy. Although Canada represents a small portion of the population in the worlds Canada represents 2.4% of global trade in goods and services, therefor Canada had a very essential role. Canada includes prioritized trade diversification and inclusion in their two-way trading of good and services. Canada has also dedicated a leading role in supporting and stable and more open trade and investment environment through multilateral entities.
While researching the free trade agreement and protectionism I decided to use this website because the information comes directly from the government of Canada, providing a different view for the readers. It was interesting to learn about how much Canada is involved in trade across the world as I did not know the exact details about this before reading this document

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Protectionism refers to government policies that shield domestic production (and producers) from foreign competition.

Protectionism

Protectionism refers to government policies that shield domestic production (and producers) from foreign competition. For example, a Canadian tariff of 15% on an automobile that costs $5000 in a foreign country means that a tax ( customs duty) of $750 will be levied on the car when it is imported to Canada. The Canadian price will be $5750, and Canadian producers of similar vehicles who can operate profitably at a price of $5750, but not $5000, will be able to compete with imports in the Canadian market. Producers dependent on protection cannot normally export, since their costs are above world prices, and they therefore depend almost entirely on the home market. (The effect of the 1965 Canada-US Automotive Products Agreement is that automobiles produced in Canada can be exported to the US, although the price in Canada is higher.)

Economic analysis shows that economic losses from a tariff exceed its benefits. Theoretically, a tariff is wasteful because it leads to a substitution of higher-cost home production for lower-cost imports; if tariffs were repealed, manpower and capital in protected industries would shift to other employments, at home or abroad, and everyone, in their role as consumers, would gain from lower prices. Owners having to change the employment of their resources would suffer losses: landowners and shareholders in the contracting industries would lose more as owners than they would gain as consumers; specialized workers in the contracting industries would probably face retraining or lower-paying jobs; and others would bear the "transitional" costs of reorganizing their economic lives. Probably the many net winners would each gain a relatively small amount, while the relatively few net losers would suffer fairly heavy losses. Nevertheless, in principle it should be possible for a government to compensate losers and still produce a net social "profit" by repealing tariffs.

The debate about protectionism has revolved around attempts to find an intellectually respectable rebuttal to the economic argument, but none has been found. Public discussion of protectionism would be better if its proponents would argue that, although it involves economic costs, these are outweighed by noneconomic benefits. The intriguing question is why virtually all governments have passed laws known to reduce their citizens' economic well-being.

Protectionist policies may confer benefits that cannot be bought in the marketplace, such as increased military security, a larger population and more diversified production, and a heightened sense of national identity. These vague contentions cannot be definitively refuted, but they seem not to fit the Canadian situation. The defence argument is largely irrelevant in countries of small populations. Belief in the virtues of size and diversification, although given no credence by economists, seems widely shared by politicians. Voters may view size and diversification as matters of national pride, in which case the "diversification" argument merges with the "national identity" argument. In Canada, arguments for protectionism are generally not supported by residents in 8 provinces who observe that the tariff diversifies production mainly in Ontario and Québec.

A second explanation may be that political dynamics almost ensure protectionist policies. Politicians are likely to support tariffs where the "protectionist" vote is concentrated, and ignore tariffs or pay lip service to "free trade" elsewhere. Even voters who would gain by repeal may vote against it in compassion for those "vested interests" whose lives would be disrupted. But this explanation is not fully satisfying. Practical techniques exist for compensating the losers from a change in government policies, so that the "compassion" argument loses force; and the "vote-getting" argument begs the question of why a political party could not promise both to raise the standard of living by phasing out tariffs and to adopt policies to ease the transition.

A third possible explanation for protectionism suggests some deep psychological or biological "imperative" compelling people to favour domestic producers and protect production in the "home territory."

Although the British North American colonies had relied upon relatively low tariffs on specific commodities for government revenues, the first coherent Canadian system of protection was established well after Confederation. Sir John A. Macdonald won the 1878 general election largely on the strength of the National Policy, a policy of Economic Nationalism designed to protect Canadian businesses against competition from lower-cost US firms. Since that time, although the 1911 general election was contested over the question of free trade with the US (see reciprocity), protectionism in some form has always been part of Canada's international economic relations.

After WWII Canada signed a General Agreement on Tariffs and Trade (GATT) that obligated member nations to reduce tariffs and other barriers to trade by multilateral negotiations. GATT has been effective in reducing tariff rates, but not in reducing "nontariff barriers." Indeed, the decline of tariffs has been accompanied by a growth of other barriers: import quotas; threats of quotas or other measures that induce foreigners to accept "voluntary export restraints" when shipping specific goods to Canada; administrative protection, by which customs officers restrict or impede the entry of imports; and many other policies ranging from exchange controls to health and safety regulations.

Canada can perhaps claim to have pioneered another form of protection: "content" provisions, which make it easier for firms to import when they produce in Canada a certain proportion of the content of the goods they sell. Content provisions have been applied to automobile firms since 1926 and are also used in the broadcasting industry.

Since WWII, several tariff substitutes have been adopted by Canadian provinces in a pronounced movement to "provincial protectionism." Marketing boards have been established to raise the incomes of certain farmers (notably milk, egg and poultry producers) by restricting provincial production, and by persuading the national government to apply tariffs to imports from abroad and "production quotas" to all provinces. Provincial governments also favour provincial producers in letting government contracts by accepting "domestic" bids even if they are higher than bids from other provinces. Recently some provinces have required firms bidding for contracts to abide by "provincial-content" rules, and some have required that particular industries give priority in hiring to applicants who reside (or perhaps were born) in the province.

The phenomenon of provincial protectionism, and the suspicion that there would also be municipal protectionism if it were feasible to restrict trade between cities - as it was in the Middle Ages when local protectionism flourished - suggests that protectionism is not simply a matter of national economic diversification or national identity.

See also Foreign Investment; Free Trade; International Trade.

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Protectionism refers to government policies that shield domestic production (and producers) from foreign competition. Protectionism refers to government policies that shield domestic production (and producers) from foreign competition. For example, a Canadian tariff of 15% on an automobile that costs $5000 in a foreign country means that a tax ( customs duty) of $750 will be levied on the car when it is imported to Canada.

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Thank you, Chair.

Mr. Chairman, I am very pleased to be here to represent Canada at our 11th WTO Trade Policy Review. Canada thanks everyone that has taken part in this important process.

Canada also warmly thanks Ambassador Juan Carlos Gonzalez, Permanent Representative of Colombia, whom we are honoured to have as our Discussant. And we thank all Permanent Representatives and delegates participating here today.

I would like to acknowledge the WTO Secretariat for its hard work in producing a very thorough and detailed Secretariat Report. Consistent with past reviews, we appreciated the opportunity for frank and productive discussion with your dedicated team throughout this important trade policy review process.

Trade drives Canada's economy. While Canada represents just 0.5% of the world's population, we account for 2.4% of global trade in goods and services. One in six Canadian jobs is linked directly to exports.

Spurred by an international trade policy framework that prioritizes trade diversification and inclusion, two-way trade in goods and services accounts for almost 66% of Canada's GDP.

Canada is proud of the role that it has played in helping to build a multilateral trading system that is based on the rule of law and has resulted in the creation of freer and more open trade.

At the time of Canada's last trade policy review in 2015, the financial crisis and ensuing global downturn, including the decline in the price of important commodities such as oil, dampened Canada's economic prospects.

Canada made a choice at that time to re-invest in its people and in innovative practices that included improved skills-training for workers, increased infrastructure spending, and fostering science and research. Canada has also continued to pursue open and liberal markets through comprehensive free trade agreements, support for the rules-based trading system at the WTO, and various types of unilateral liberalization measures.

The result of these efforts is clear:

Canada is now the10th-largest economy in the world. According to the OECD, Canada's average annual real GDP growth from 2015 until 2018 ranked high among G7 countries and is forecast in 2019-2020 to be the second highest in the G7. Since 2015, Canada has created more than 1 million new jobs-over 950,000 being full time jobs. By the end of 2018, Canada's unemployment rate reached 5.6%.

Despite the global rise of protectionism and growing trade tensions, which have added uncertainty to the global economic environment, Canada continues to voice support for the rules-based multilateral trading system, seek new trading partners, and remains committed to helping its businesses take advantage of opportunities in new markets abroad.

Support for the multilateral trading system

The WTO constitutes a critical part of Canada's international trade policy engagement. As Canadians, we believe stronger trade deepens trust and friendship between countries and shrinks the distance between us.

That is why Canada's Minister of International Trade Diversification has convened a small group of 12 other diverse, but like-minded, members to discuss pragmatic and realistic ideas to modernize and strengthen the WTO, now known as the "Ottawa Group". Since last October, Ministers have met three times, most recently in Japan on June 9 th

Beyond the Ottawa Group, Canada is working to update the WTO's rule-book to ensure that the rules reflect 21st century realities. For example, Canada is advancing negotiations on fisheries subsidies and agriculture and is engaged in all of the Joint Statement Initiatives, including discussions on e-commerce and domestic regulation of services.

Canada has also sought to play a leading role in supporting a more stable and open trade and investment environment through other multilateral entities, including our engagement at the G20, APEC, and the OECD.

Canadians have shown themselves united in confronting the challenges of growing protectionism. Our efforts signal to the world that trade matters, that rules matter, and that we will not be drawn into the world of protectionism.

Trade diversification

Canada has also pursued an ambitious trade diversification agenda, including through the negotiation of comprehensive free trade agreements. This has resulted in a few notable accomplishments including provisional application of CETA - Canada's free trade agreement with the European Union, which marked its one year anniversary this past fall; bringing into force the CPTPP with key Asia-Pacific trading partners; and signing the Canada-U.S.-Mexico Agreement, or CUSMA, which will modernize NAFTA once it enters into force.

Last fall, we welcomed our Ukrainian counterparts to Ottawa for the inaugural Canada-Ukraine FTA Joint Commission, which celebrated the first anniversary of our free trade agreement.

This past February, Canada brought into force a modernized and inclusive free trade agreement with Chile, making Canada the first G20 country to adopt a Gender chapter in a free trade agreement.

And, last month, Canada ratified its modernized and inclusive FTA with Israel - improving on what was already a great trading relationship. The updated agreement brings this FTA up to standard with Canada's more recent trade agreements by addressing non-tariff barriers, and includes new chapters on trade and gender, small and medium enterprises, labour and environment, as well as a new provision on corporate social responsibility.

Finally, Canada is actively pursuing opportunities in other important and fast-growing markets and is making inroads: Canada is engaged in FTA negotiations with partners in South and Central America-the Pacific Alliance and MERCOSUR-and is exploring possible FTA negotiations with ASEAN.

Taken together, Canada now has 14 FTAs in force covering 51 countries, connecting our businesses to 1.5 billion of the world's consumers and two thirds of global GDP.

In addition to including investment chapters in its FTAs, Canada negotiates stand-alone bilateral investment treaties that we refer to as FIPAs, or Foreign Investment Promotion and Protection Agreements. These investment treaties aim to provide greater predictability and certainty for Canadian investors considering investment opportunities abroad.

Following public consultations, Canada is currently in the process of modernizing its FIPA model to bring it in line with the government's inclusive trade and investment agenda.

While this degree of market access is impressive, Canadians understand that market access alone does not guarantee jobs and prosperity. Encouraging Canadian businesses of all sizes and all sectors to become global exporters is a national priority.

Canada's trade diversification agenda aims to ensure that we are maximizing growth at home by fully capitalizing on emerging economic opportunities abroad.

To that end, the government has launched a Trade Diversification Strategy aimed at helping Canadian businesses take advantage of hard-won access to overseas markets.

The Strategy sets an ambitious target of increasing overseas exports by 50 percent by 2025, and aims to position Canada as an even more globally-connected economy in the years ahead.

In Canada's previous trade policy review, the WTO noted that removing additional barriers to investment would reverse the trend of Canada's declining share of FDI. We have taken steps to address this. In fact, 2018 marked a 60% increase in FDI flows to Canada at a time when global capital flows into OECD countries dropped by 23%.

In March 2018, the Government of Canada created Invest in Canada, an agency whose focus is to streamline and encourage global investment into Canada by providing services that make it easier for global companies to choose Canada for their next business expansion.

Inclusive trade

While Canada remains a staunch defender of the multilateral trading system, we also recognize the concerns that drive protectionist thinking and rhetoric - notably, that the benefits of trade are not being distributed fairly.

Canada is advancing an inclusive approach to trade that seeks to ensure that all segments of society can take advantage of the opportunities that flow from trade and investment agreements.

This approach includes increased public engagement on trade policy; seeking provisions in our trade agreements to protect and strengthen labour rights and the environment; advancing gender equality and women's empowerment through increased involvement in international trade; in addition to fostering opportunities for traditionally underrepresented groups, such as small and medium enterprises (SMEs) and Indigenous peoples, to engage in international trade.

For example, we believe that the link between trade and gender is an important consideration, and that is why Canada has sought gender provisions in our newest FTAs. Canada also has a long-standing Business Women in International Trade program - or BWIT - which provides targeted support and services to export-ready and export-active women-owned businesses to better exploit supplier-diversity and other global commercial opportunities. Over the past decade, more than 1,500 women-owned businesses have participated in BWIT-led trade missions and initiatives.

Canada is spearheading similar work here at the WTO, where we actively championed the WTO Joint Declaration on Trade and Women's Economic Empowerment, which was endorsed in December 2017 by over 120 WTO members and observers. In this regard, we were pleased to organize the very first workshop, on trade and gender-based analysis, to be held under the auspices of the Declaration.

On a more personal note, in my role as Director General of the Trade Negotiations Bureau at Global Affairs Canada, I am responsible for ensuring that all of Canada's international trade and investment agreements are subject to a comprehensive analysis of gender impacts through Gender Based Analysis Plus (GBA+) assessments. As some of you will know, this is no small feat and we are interested in learning from others that may be exploring this.

Acknowledging the link between trade and gender is not just good policy, it is also good for prosperity. A 2017 study by the McKinley Institute has shown that addressing gender equity has the potential to add $150 billion to Canada's GDP by 2026.

Canada has also prioritized its relationship with Indigenous peoples based on recognition of rights, respect, cooperation, and partnership. Advancing an inclusive trade agenda that includes Indigenous peoples in Canada is a part of this relationship. During the review period, Canada has sought to increase the opportunities for Indigenous people to benefit from international trade and investment, while preserving their constitutionally protected rights.

Canada has also sought to include SMEs in its inclusive approach to trade. SMEs comprise 99.7% of Canadian businesses. However, as of 2017, only 11.7% actively export goods and/or services.

Canada aims to boost FTA utilization by SMEs through the inclusion of dedicated SME chapters that contain general provisions that recognize the importance of SMEs to the economy and facilitate cooperative activities and information sharing. The CPTPP, CUSMA, and the modernized Canada-Israel FTA all contain SME chapters.

Since our last Trade Policy Review, Canada has undertaken a number of important trade-related changes to our domestic regime. These include Canada's ratification and accession to several important multilateral IP treaties such as the World Intellectual Property Organization (WIPO) Marrakesh Treaty and the WIPO Hague Agreement, as well as implementing certain IP provisions in trade agreements like CETA and CPTPP.

Canada has also taken measures to modernize our sanitary and phytosanitary (SPS) approach, moving towards a more preventive and systems-based approach - which will allow for better adaptation to emerging risks and global and scientific trends - while improving client access through electronic services and information on regulatory compliance. And, seeking to avoid barriers to trade and the promotion of regulatory cooperation, Canada has set out guidance for regulators to take into account international trade considerations when reviewing or developing regulations.

Finally, the Canadian Free Trade Agreement, or CFTA, entered into force in July 2017 and introduced important advancements to Canada's internal trade framework that have enhanced the flow of goods and services, investment and labour mobility within Canada. The CFTA also better aligns Canada's domestic trade commitments with those in its international agreements, such as CETA.

Conclusion

In conclusion Mr. Chairman, in the face of global uncertainty, the Government of Canada has prioritized pursuit of trade diversification and free trade in order to drive continued global economic growth, rather than turning inward and retreating to protectionism. This approach is reflected in Canada's role on WTO reform as well as its successes in pursuing ambitious and comprehensive free trade agreements with new partners.

At the heart of Canada's trade policy is a desire to protect and build global confidence in the benefits of liberalized trade and the multilateral system that supports it, safeguarding the economic health of all trading nations.

Canada will continue to work with partners bilaterally and through multilateral forums to build the trust and collaboration needed to solve challenges that matter to all our citizens, so they can make the most of the opportunities that come from globalization.

I recognize that many here have questions about our policies. More than 600 questions have already been posed to Canada, and we have provided answers to all of them. I expect even more questions after opening the floor to all of you here today. I welcome this engagement and your valuable contributions to Canada's review.

Thank you.

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Canada's 2019 Trade Policy Review opening statement

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Thank you, Chair. Mr. Chairman, I am very pleased to be here to represent Canada at our 11th WTO Trade Policy Review. Canada thanks everyone that has taken part in this important process. Canada also warmly thanks Ambassador Juan Carlos Gonzalez, Permanent Representative of Colombia, whom we are honoured to have as our Discussant.

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Trade Protectionism in Canada: Tools Used by Government 

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Trade Protectionism in Canada: Tools Used by Government 

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Canada's Special Import Measures Act (SIMA) could affect your plans to import a new product to Canada. Verifying if the product you want to bring isn't affected could help you avoid duties which would otherwise have a significant impact on your bottom line.

The Act is designed to provide protection to Canadian producers who are being harmed or injured by the dumping or subsidizing of goods imported into Canada. Since its enactment, SIMA has been amended to bring it into conformity with Canada's obligations under the Canada-United States Free Trade Agreement (FTA), the North American Free Trade Agreement (NAFTA) and, more recently, the World Trade Organization (WTO) agreements relating to anti-dumping and subsidies.

What is anti-dumping duty?

Such a duty is assessed when it is found that a product is being sold to Canadians at a price that is lower than comparable ones already available in the exporting country. When the goods are being sold in Canada at an unprofitable rate, an anti-dumping duty would also be applied.

What is countervailing duty?

A countervailing duty is applied when it is determined that a producer or exporter is being financially backed by their home country to sell their product at a cost lower than Canadian market value.

When and why?

The Canada Border Service Agency, in conjuncture with the Canadian International Trade Tribunal administer anti-dumping and countervailing duties. These duties are applied as a proactive step once a complaint is received in relation to a product found to be sold at costs lower than the market value, which in results harm Canadian industry.

In order for both these duties to be applied, an investigation needs to occur, via the Canadian International Trade Tribunal, which needs to determine that there is a significant dent in the Canadian industry.

The Tribunal also has the power to apply a provisional duty which is intended to protect Canadian industry and producers while the Tribunal makes its final decision.

It's only once the Tribunal has confirmed the basis of dumping or countervailing, that the CBSA can impose anti-dumping or countervailing duty. Thanks to these duties, the playing field is leveled between importers and local producers. These duties are usually imposed for a period of five years after which there is a new reassessment.

Who's complaining?

Canadian producers that suspect that competing goods are being brought into the country are dumped or subsidized can complain to the CBSA. Producers' associations can also file a complaint on behalf of its members.

When deposing a complaint, it must contain information on the Canadian good affected, the competing good as well as a portrait of the conditions in the Canadian market and the domestic industry. Proof must show that the dumping or subsidizing of the goods are causing harm to the Canadian industry.

To avoid coughing up money, importers should have a look at the Measures in Force listing on the CBSA website: http://www.cbsa-asfc.gc.ca/sima-lmsi/mif-mev-eng.html in order to discover the current list of the duties.

In order to find out more about SIMA Program, consulting the CBSA's website on the matter is the best first step: http://www.cbsa-asfc.gc.ca/sima-lmsi/contact-eng.html

If you would like the help of a professional for your shipment, Contact Us Today

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Trade Protectionism in Canada: Tools Used by Government

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Canada's Special Import Measures Act (SIMA) could affect your plans to import a new product to Canada. Verifying if the product you want to bring isn't affected could help you avoid duties which would otherwise have a significant impact on your bottom line.