How-To Understand the Implications of the Canada-Chile Free Trade Agreement on International Trade and Economy

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Title: Understanding the Implications of the Canada-Chile Free Trade Agreement on International Trade and Economy

Before we start, it’s important to understand the basics. The Canada-Chile Free Trade Agreement (CCFTA) is a treaty established in 1997 that removes many trade barriers between Canada and Chile, encouraging bilateral trade and economic growth.

Now, let’s dive into the steps to understand this agreement and its implications.

Step 1: Start with Basic Research

Firstly, familiarize yourself with the basic principles of international trade and economy. This includes understanding concepts like balance of trade, tariffs, free trade, and protectionism. Use reliable resources like academic articles, textbooks, or online courses.

Step 2: Read the Agreement

Acquaint yourself with the Canada-Chile Free Trade Agreement. Understand its primary objectives, which include eliminating barriers to trade, promoting conditions of fair competition, increasing investment opportunities, and enhancing multilateral trade. The full text is available on the Government of Canada’s website.

Step 3: Analyze the Individual Provisions

The agreement covers a broad range of areas like goods, services, investment, financial services, temporary entry for business persons, government procurement, environment, and dispute settlement procedures. Review each area separately and understand its implications on both countries’ economies.

Step 4: Understand the Economic Impact

Review studies that have been done on the impact of CCFTA on both economies. Search for articles and papers on this topic and assess the before-and-after stats for key indicators like GDP growth, unemployment rates, and bilateral trade volume.

Step 5: Learn About the Specific Industries

Dive into how the agreement has affected specific industries. For instance, Canada’s export of machinery and equipment to Chile has grown significantly due to tariff elimination under CCFTA. Understand how the changes in tariffs or regulations impact business operations.

Step 6: Compare With Other Free Trade Agreements

Compare the provisions and impacts of CCFTA with other free trade agreements that Canada or Chile has with other countries. This will give a bigger picture of the countries’ trade policies and strategies.

Step 7: Keep track of Recent Developments

Stay updated with recent developments related to the agreement. This includes changes or amendments to the agreement, disputes related to the treaty, and its impact on specific events like Brexit or the Covid-19 pandemic.

Step 8: Get Expert Opinion

Finally, reach out to professors, economists, or industry experts to hear their perspectives on the agreement. Attend seminars, webinars, or workshops on this topic.

By following these steps, you will be able to thoroughly understand the implications of the Canada-Chile Free Trade Agreement on international trade and economy. This will help you make informed decisions in your professional or academic pursuits related to international trade.