Recently, Canada made a political deal with the European Union that revolves around free trade. Because of this, the Canadian Federal Government believes that this trade could boost annual income as well as bilateral trade. The Canada-EU Trade Agreement (CETA) will have drastic changes to Canadians such as cheaper goods, more Canadian meats (beef, pork, bison), more European cheese, intellectual property rights and drugs, and Provincial/Municipal Contracts. Is this trade truly beneficial?
I personally think that this trade is beneficial to the Canadian economy as it helps increase the production of meat, create new jobs, and reduce prices. Cheaper goods such as foods, wines, and cars will mean that Canadians spend more as they strive to increase their utility maximization. They get more out of their income as purchasing power increases. Canadian meat markets are exposed to other countries, giving them access to markets. Pharmaceuticals are being less restricted and compensated, which helps innovate medicines and cures that go towards improving the health of Canadians. Provincial/Municipal Contracts help create new jobs which is crucial towards improving the economy.
All these benefits help society as a whole, but the effects from this trade can be damaging as well. The markets for beef, pork, and bison are being stimulated at the cost of dairy markets. Receiving imports of European cheese means that the Canadian dairy products will suffer a huge blow in production, as there is an entrance of a competitor. Also, the dairy section is losing its cultural identity as people expect to buy cheese that is made from their homeland and not imported cheese. The Provincial and Municipal contracts are privatizing things such as hydro. This will cause a dilemma as profits become private while losses are spread out, making it unfair and uneven.
Source: http://www.cbc.ca/news/politics/5-ways-the-canada-eu-trade-deal-will-impact-canadians-1.2125510