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The Negative Impacts of Free Trade on the Canadian Economy and Society

1. Introduction

The Canadian government has increased its rate of globalization as one of the strategies through which it has formulated public policy. As part of this strategy, the Canadian government has signed a number of free trade agreements, most notably the North American Free Trade Agreement (NAFTA). The goal of these agreements is to reduce trade barriers and increase economic efficiency. However, there is evidence that free trade has had a number of negative impacts on the Canadian economy and society. In particular, free trade has exacerbated inequality, reduced wages, and led to job losses in certain sectors of the economy.

2. The Undermining of Free Trade

The NAFTA agreement was negotiated between the United States, Canada, and Mexico and came into effect on January 1, 1994. The agreement liberalized trade between the three countries and removed many tariffs and other trade barriers. NAFTA was seen as a way to increase economic efficiency by allowing each country to specialize in the production of goods and services in which it had a comparative advantage. However, there is evidence that NAFTA has had a number of negative impacts on the Canadian economy and society. One study found that NAFTA has led to a significant increase in income inequality in Canada (Bakan 2004). Another study found that NAFTA has been associated with lower wages for workers in Canada (Drolet 2017). Finally, NAFTA has been linked to job losses in certain sectors of the Canadian economy, such as manufacturing (Drolet 2017).

3. The Impact of Free Trade on the Canadian State

One of the main goals of free trade agreements like NAFTA is to reduce trade barriers and promote economic efficiency. However, there is evidence that free trade has had a number of negative impacts on the Canadian state. In particular, free trade has led to a significant increase in income inequality in Canada (Bakan 2004). This increase in inequality means that the rich are getting richer while the poor are getting poorer. This trend is bad for social cohesion and can lead to increased crime rates and lower levels of social trust. Additionally, free trade agreements like NAFTA have been linked to lower wages for workers in Canada (Drolet 2017). This trend is bad for workers and can lead to increased poverty rates. Finally, free trade agreements have been linked to job losses in certain sectors of the Canadian economy, such as manufacturing (Drolet 2017). This trend is bad for workers and can lead to increased unemployment rates.

4. The Negative Impacts of Free Trade on Canadian Society

In addition to the negative impacts on the Canadian state discussed above, free trade also has a number of negative impacts on Canadian society more broadly. One study found that NAFTA has led to a significant increase in income inequality in Canada (Bakan 2004). This increase in inequality means that the rich are getting richer while the poor are getting poorer. This trend is bad for social cohesion and can lead to increased crime rates and lower levels
5of social trust. Additionally, free trade agreements like NAFTA have been linked to lower wages for workers in Canada (Drolet 2017). This trend is bad for workers and can lead to increased poverty rates. Finally, free trade agreements have been linked to job losses in certain sectors of the Canadian economy, such as manufacturing (Drolet 2017). This trend is bad for workers and can lead to increased unemployment rates.

5. Conclusion

In conclusion, there is evidence that free trade has had a number of negative impacts on the Canadian economy and society. In particular, free trade has exacerbated inequality, reduced wages, and led to job losses in certain sectors of the economy. These trends are bad for workers, bad for social cohesion, and bad for the Canadian economy as a whole. The Canadian government should reconsider its strategy of liberalizing trade and instead focus on policies that will help to improve the lives of workers and reduce inequality.

FAQ

The role of the Canadian state in public policy is to develop, implement, and oversee the implementation of policies that affect Canadians.

Free trade as a matter of public policy has undermined the role of the Canadian state by reducing its ability to regulate trade and by limiting its ability to intervene in the economy.

The implications of this for Canada and its citizens are reduced economic security and sovereignty, and increased vulnerability to economic shocks.

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