Free
Trade WORKS
With
the twentieth anniversary of the Canada-US Free Trade Agreement (FTA) upon
us, this is a great opportunity to put this agreement in perspective, and
see it as the visionary and influential initiative that it truly was.
Today,
the world is an increasingly open place, where free trade is often taken
for granted. We can point to many examples around the world where trade
barriers are falling and geographic neighbours are building on decades and
centuries of friendship by linking their economies through free trade.
It
wasn’t always this way.
When
Canada and the US agreed to negotiate a free trade agreement that built on
our existing commercial and personal links, this was seen as a bold, even
controversial move for our two countries.
Free
trade was generally viewed with suspicion. There were precious few
precedents to point to. Protectionism was alive and well in many countries
around the world.
But
Canada is a leader, not a follower. Thanks to the vision and determination
of the Conservative government of Prime Minister Brian Mulroney, we are
now celebrating and reaping the benefits of 20 years of enhanced trade
relations with our American neighbour.
By
all accounts, the agreement’s performance has far exceeded even the most
optimistic of expectations. Since 1989, two-way trade between our
countries has tripled, reaching $710.5 billion. Canada and the U.S. now
enjoy the largest bilateral economic relationship anywhere in the world.
The
Canada-US border provides a good snapshot: 13.5 million trucks and over
200 million people cross the border each year.
This
translates into significant job-creation. An estimated 3 million jobs in
Canada depend on our trade with the U.S.
It’s
also given countless Canadian companies, large and small, greater access
to the American market of 300 million people.
Similarly,
US companies continue to invest heavily in Canada, creating jobs in
communities from coast-to-coast.
Based
on the FTA’s success, Canada and the U.S. joined with Mexico to expand
our relationship and sow the seeds of a truly continental partnership.
Through the North America Free Trade Agreement, our three nations have
created the world’s largest free trade zone, and made North America the
world’s most prosperous continent.
Finally,
our success has provided a spark of inspiration worldwide, with nations
around the world looking to the FTA and to North American Free Trade
Agreement (NAFTA) as of model of trade liberalization.
Today,
this inspiration is more important than ever, as some countries hide from
global economic realities and want to revert to protectionism and insular
economics.
Even
in Canada and the US, there remain some people who would want us to turn
our backs on the 20 years of job creation and economic gain brought to us
by free trade.
The
best way to fight this kind of thinking is to lead by example.
Canada
and the US have twenty years of proof that clearly demonstrates the
benefits of free trade — in terms of job creation, in terms of
prosperity, and in terms of quality of life for Canadians and Americans
alike.
None
of the nightmare scenarios and conspiracy theories put forward twenty
years ago, and that some members of the NDP persist to believe, have
materialized. Canada remains a strong, sovereign country whose citizens
are proud of our nation’s role in the world and confident in our
relationship with our neighbour and closest ally, the United States.
The
success of the FTA shows that free trade works. And thanks to the vision
of the Conservative government of the time, Canadians will enjoy its many
benefits for years to come.
David
Emerson
Minister
of International Trade
_
