Canada’s new free trade agreement with the European Union has opened the door for new opportunities for Canadian businesses, but has also opened the door for new threats (European businesses) to enter and hinder already established Canadian businesses.
Canadian and European Free Trade Agreement
The dairy, beef, and wood industries (to name a few) could all benefit from this trade agreement. The burden would now be placed on European suppliers of these goods to compete against the Canadian suppliers, if the European suppliers prices do not drop they will be greatly affected, as the consumers will be more likely to buy the cheaper Canadian products. What the free trade agreement really did though was get rid of the biggest barrier; entry for Canadian industries into the European market. With this barrier removed it is now easier for the Canadian companies to enter into the market (tariffs increasing prices from 5% to 10+%) without the consequences that would have hurt their product before the free trade agreement. The free trade agreement has made it a fair competitive field for all the suppliers from Europe and Canada on goods. The lowest price for the best quality will normally win and succeed.
Video
Canada and European Union Free Trade Agreement
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