C5 trade2

Slide1: 

Canadian Agriculture, and International Trade “A country that depends on exports, imports its misfortunes” Stephen Leacock, 1941 Trade has always been a big part of what Canada is all about Trade and trade routes motivated discovery (short cut to the East) Early development in the East the result of trade interests supply of resources to the colonial powers (Britain, France) Exploration and settlement of Western Canada: driven by trade interests Company of Adventurers The CPR + Macdonald’s National Policy (1878)

Slide2: 

Fortunes and misfortunes of the 1600’s – 1900’s: All linked to trade Late 1700’s – Napoleonic Wars – Louisiana Purcahse (1803) 1822 - Canada Trade Act 1840 – Corn Laws – 1849 Montreal Manifesto 1854 – Reciprocity Treaty 1900’s – prosperity linked to agr. exports 1911 – Federal Election (Laurier loses ….. again) Late 1800’s MacKinley Tariff 1930’s - Smoot Hawley Tariff Post WW II and future prosperity depends on our success in international trade

Canada Depends on Exports1971 = $21 Billion2005 = $500 Billion: 

Canada Depends on Exports 1971 = $21 Billion 2005 = $500 Billion

Importance of Trade to CanadaExports are a significant part of our economy (output, income, employment)$1.3 Trillion GDP (2005): 

Importance of Trade to Canada Exports are a significant part of our economy (output, income, employment) $1.3 Trillion GDP (2005)

Exports, GDP and Current Account for Some Trading Partners: 

Exports, GDP and Current Account for Some Trading Partners Source: CIA World Fact Book (2006 estimates)

Canadian Trade: All Goods and Services (Current dollars $million): 

Canadian Trade: All Goods and Services (Current dollars $million)

Slide7: 

2005 trade balance with US = $150 Billion

The US is our most important trading partner: 

The US is our most important trading partner 85% of exports go to the US 60% of imports come from the US Both have declined after 2001

Agri-Food Trade is Important62% of Agr Exports go to the US: 

Agri-Food Trade is Important 62% of Agr Exports go to the US

60% of Agri-Food Imports come from the USTrade Balances: Total $9 Billion US $6 Billion: 

60% of Agri-Food Imports come from the US Trade Balances: Total $9 Billion US $6 Billion

1980’s and 1990’s The Three Amigos: 

1980’s and 1990’s The Three Amigos 1989 CUSTA 1993 NAFTA 1995 WTO Uruguay Round Conditions Leading to These Agreements 1970 - 80's Agriculture becoming more trade oriented as part of the early process of globalization Government intervention escalating, particularly during the 1980's (US/EU) programs based on support on a per unit of production > encouraged more production > coupled support interventions very trade distorting and costly to consumers and governments

Benefits and Costs of Support to Farmers in Industrialized Countries (1986-87) ($Billions): 

Benefits and Costs of Support to Farmers in Industrialized Countries (1986-87) ($Billions) Transfer cost: $1.42 per dollar transferred Industrialized countries agreed that there would be benefits from liberalizing trade

ITO, GATT, WTO and the Uruguay Round (1986-1995): 

ITO, GATT, WTO and the Uruguay Round (1986-1995)

Principle objectives of the Uruguay Round: 

Principle objectives of the Uruguay Round

CUSTA and NAFTA: 

CUSTA and NAFTA

Some Results from CUSTA (1989): 

Some Results from CUSTA (1989)

NAFTA 1991-93: 

NAFTA 1991-93

NAFTA Outcomes: 

NAFTA Outcomes 1 - extended CUSTA tariff reductions to Mexico over periods of up to 15 years 2 - eliminated quantitative restrictions (e.g. import quotas) 3 - SM still protected 4 - Tri-national panel to deal with subsidy issues 5 - commitment to work towards elimination of export subsidies 6- technical, sanitary and phytosanitary regulations and standards still sovereign must be based on science criteria 7 - strict limits on export taxes and no new tariffs 8 - Commission for Environmental Cooperation (CEC)

GATT/WTO Agreement (1986 - 1995): 

GATT/WTO Agreement (1986 - 1995)

Some impacts on Canada: 

Some impacts on Canada

Bottom Line: 

Bottom Line

What’s Ahead - Doha Round2001 - ??: 

What’s Ahead - Doha Round 2001 - ??