Today, I stumbled across this article on CBC News in which I found particularly interest because I’m curious about the creation of a new partnership between Canada and China. Overall, the article talks about the use of the currency deal between the Canadian dollar and the reminbi to increase Canadian trades, both importers and exporters. Simply, Canada wants to increase the demand of its products. Through this deal, trading between the nations will become easier as they eliminate the middle man, the U.S. dollar, to avoid additional charges on currency exchange.

Image Source – The Canadian Press

As a Canadian resident, I strongly support this start-up commercial relationship because it will foster a more competitive industry for Canada. Currently, Canadian consumers are in a monopoly market controlled by companies such as TELUS, Trans Link, Shell, ICBC, etc. These companies lack of competition and thus, Canadians must pay more for the same goods whereas consumers in the states, for example, pay less due to an existing competitive market. The currency deal will greatly benefit both parties as hundreds of thousands of jobs will be created for an exchange of sustainable aerospace technology. Ultimately, it is comforting to see Canada and China join forces to raise the standard of living for both nations. Just this deal alone will support almost 3% of the total jobs in Canada. Consequently, with the aircrafts provided by Bombardier, China’s economy will continue to grow, possibly surpassing the U.S. economy in later years. Therefore, the benefits of this new relationship are surmountable and I support it forward.

Reference

Press, The. “Canada, China Sign Currency Deal Aimed at Boosting Trade.” CBCnews. CBC/Radio Canada, 8 Nov. 2014. Web. 8 Nov. 2014. <http://www.cbc.ca/news/politics/canada-china-sign-currency-deal-aimed-at-boosting-trade-1.2828707>.