Canadian International Trade 1950-2000 600,000,000,000 500,000,000,000 400,000,000,000 Imports Value of Imports and Exports in $$ 300,000,000,000 Exports 200,000,000,000 100,000,000,000 0+ 1940 1950 1960 1970 1980 1990 2000 2010 YearsCanadian Investment Abroad in dollars (selected years) 300000 250000 200000 O Primary Industries Investment in millions of dollars 150000 Secondary Industries O Tertiary Industries 100000 50000 1950 1974 2000 YearsCanadian Investment Abroad by Industry Type 100% 90% 80% 70% 60% o Tertiary Industries Secondary Industries 50% Percentage of Canadian Investment Abroad Primary Industries 40% 30% 20% 10% 0% 1974 2000 1950 YearsForeign Investment in Canada by in dollars (selected years) 250000 200000 150000 O Primary Industries Secondary Industries Investment in millions of dollars O Tertiary Industries 100000 50000 0 1950 1974 2000 YearsForeign Investment in Canada by Industry Type (selected years) 100% 90% 80% 70% 60% O Tertiary Industries " Secondary Industries Percentage of Foreign (Investment (%) 50% o Primary Industries 40% 30% 20% 10% 0% 1950 1974 2000 YearsNumber of Cars Produced in North America, Selected Years Percentage of Cars Produced in North America by Country, Selected Years 14,000 100% 12,000 80% 10,000 8.000 - Canada 60% O Mexico - United States Number of Cars United States Percentage of Production 3.000 Mexico O Canada 10% 4,000 20% 2,000 0 - 0% 1960 1965 1970 1975 1980 1990 1995 2000 2005 1965 % NA Prod % NA Prod Years Years Percentage of Cars Produced Globally, Selected Years Number of Cars Produced Globally, Selected Years 100% Rest of the World 14,000 * United States 90% China Japan 12,000 Mexico - Germany 80% Russia *France 70% 10,000 Italy * South Korea 60% Brazil -Spain 8,000 United Kingdom +Canada of Cars Produced 50% Percentage . Canada Number of Cars Produced -United Kingdom 6,000 40% Spain -Brazil South Korea Italy 30% 4,000 o France Russia 20% o Germany Mexico 2,000 Japan China 10% O United States - Rest of the World 0% 0 1965 1980 2002 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Years YearsNorth American Integration The birth of the Canadian car making industry took place in 1904 when Henry Ford opened a factory in Windsor, Ontario. Eventually, the Big Three American car companies - Ford, General Motors, and Chrysler - had built factories in Canada. Despite this, before 1965, most cars in Canada were made in the United States As a result, Canada imported more cars from the United States than it exported to the United States. Canada wanted to change this and the United States wanted Canada to lower the tariffs on cars being shipped to Canada. On January 16, 1965, Prime Minister Lester B. Pearson and U.S. President Lyndon B. Johnson signed an agreement called the Auto Pact, which joined the car industries in Canada and the United States and made them one big auto industry. This meant that he U.S. could build bigger car factories and Canada could expand its auto industry. Canadians also got a larger selection of cheaper cars. The agreement made it so that half of all cars sold in Canada had to be made in Canada, and that in every car made in Canada 60% of the parts had to be made here. Before continuing, open and read the following four graphs so that you can complete the work in Assignment #1. Graph #1: Number of Cars Produced in North America, Selected Years Graph #2: Percentage of Cars Produced in North America by Country, Selected Years Graph #3: Number of Cars Produced in Globally, Selected Years Graph #4: Percentage of Cars Produced Globally, Selected Years The above graphs were produced using publicly accessible data from Canada's Automotive Industry 2003 On September 26, 1985, Prime Minister Brian Mulroney officially announced his intention to talk about free trade with the U.S., and create an agreement with lower tariffs between the two countries. U.S. President Ronald Reagan agreed to this as well. Some people in Canada were afraid that an agreement like this would cause Canada to lose its independence, culture, and all the social programs that people in Canada felt were essential. Mulroney believed that free trade would help Canadian businesses to sell products in the United States. American businesses would be able to invest in Canada more easily and create jobs here. In 1987, PM Mulroney and President Reagan signed their Free Trade Agreement. The agreement still had to be accepted by the Canadian people. As a result, it was the biggest issue in the 1988 Canadian election. In that election, PM Mulroney defeated John Turner, and Canada's Parliament accepted the Free Trade Agreement. Even ten years later, the agreement was bringing more investment by the U.S. in Canada, and more Canadian exports to the U.S., although it did mean that some jobs did leave Canada and go to the United States. In 1994, the agreement was expanded to include Mexico, when it became known as the North American Free Trade Agreement (NAFTA). In November 2006, the conference Board of Canada released a report that showed that most multinational companies that had invested in Canada found that NAFTA had had favourable, or at least neutral, effects on their business. Value in Millions of Canadian Dollars 400,COD- 300,COD- 200,000 100,000 - United States (U.S.) - Marico KavaChart Servlets fron VE. com Graph of the Value of Canadian Exports (in Canadian dollars) between 1906 and 2005 to NAFTA countries. http://strategis.ic.gc.ca/so_mrkti/tdst/tdo/tdo.php. This image was generated using user inputted data variables Value in Millions of Canadian Dollars 250,000 200,COD 150,000 100,000- 50,DOD - United States (U.S.) - Mexico KavaChart Servlets Fron VE. com Graph of the Value of Canadian Ixports (in Canadian dollars) between 1906 and 2005 to NAFTA countries. This image was generated using user inputted data variables Value in Millions of Canadian Dollars 400,DOD 300,COD 200, DOD- 100,000- United States (U.S.) - Tot Total Imports -100,COD- - Mexico - Total Exports - Total Imports - - Trade Balance KavaChart Servlets Fron VE. com Graph of the Canadian Trade Balance (in Canadian dollars) between 1998 and 2005 with NAFTA countries. This image was generated using user inputted data variables.Global Integration - WTO The World Trade Organization (WTO) is the successor organization to the General Agreement on Trade and Tariffs, and was created in 1995. The WTO was created as an organization designed to liberalize, or free, trade around the world, set trade rules, facilitate the negotiation and creation of trade agreements, and settle trade disputes between countries. In terms of liberalizing trade, the main ideas behind the WTO rules are to treat all countries equally and the same, to treat foreign and domestic producers the same, make trade competition more fair, lower or eliminate trade barriers like tariffs, and ultimately encourage global economic development. The idea behind the WTO is that by opening trade, all countries in the world will eventually specialize in the production of goods and services that they can produce best or most efficiently. In doing so, prices fall, and consumers have more money to consume a greater variety of goods and services, and thus they demand more things. By demanding more things, production goes up, and jobs are created around the globe. Through the WTO, Canada's priorities include the following: 1. Improve trade in agricultural goods 2. Increase access to more markets for Canadian exporters 3. Improve the rules to make it harder for other countries to try to intentionally put smaller Canadian businesses out of business 4. Make trade across borders easier 5. Assist developing countries in improving their economies and technical development The process of negotiating these trade agreements is incredibly difficult on the basis of the number of countries involved (150). Value in Millions of Canadian Dollars SOO, COD - 100,COD 300,00D- 200,000- 100,000 - - ALL COUNTRIES (Total - Total Imports - - Trade Balance KavaChart Servlets Fron VE. com Graph of the Canadian Trade (in Canadian dollars) with the World between 1098 and 2005 to NAFTA countries. This image was generated using user inputted data variables. Value in Millions of Canadian Dollars 15,00D- 10,000- 5,DOD- - ALL COUNTRIES (Total 2002 - Total Imports 2003 2005 - Trade Balance KavaChart Servlets Fron VE. com Graph of the Canada's Trade in Agricultural Goods (in Canadian dollars) between 1996 and 2005 to NAFTA countries. This image was generated using user inputted data variables.Non-Economic Integration Great Lakes Water Quality Agreement nce River This is a map of the Great Lakes / Saint Lawrence River Watershed. I, Karl Musser , created it based on USGS data. A variant of this map with U.S. counties added is available at Image: Grlakes lawrence map2.ping http://en.wikipedia.org/wiki/Image: Grlakes_lawrence_map.png . Image used in accordance with the requirments of the source. The Great Lakes Water Quality Agreement was an initative of Canada and the United States to ensure the environmental integrity of their shared water border along the Great Lakes. It was created in 1972 in response to the immense pollution and detrimental effects seen in the Great Lakes, especially Lake Erie. Under the agreement, Canada and the United States agreed to work together to prevent further pollutants from entering the lakes, and to clean up the pollution already there. In 1987, specific sites of extreme concern were identified, and work commenced on cleaning them up. Now, levels of contamination are declining, and the numbers of fish in the water, and bird species such as bald eagles around the lakes, are rising 1800 Annual Carbon Emissions by Region 1600 USA & Canada Western Europe 1400 Communist East Asia Eastern Europe & Former Soviet States 1200 India & Southeast Asia Australia, Japan, Pacific Ocean States Million Metric Tons of Carbon / Year Central & South America BOD Middle East Africa 600 2400 200 1800 1850 1900 1950 2000 This figure was originally prepared by Robert A. Rohde from publicly available data for Global Warming Art. Image used in accordance with Global Warming Art Licence. In 1992, Canada sent delegates to Rio de Janeiro, Brazil, to attend the Earth Summit. The main outcome of the Earth Summit was the creation of the United Nations Framework Convention on Climate Change. The treaty that was developed in 1992 was then updated in 1997, with the updates coming into effect in 2005. These updates are called the Kyoto Protocols. The main thrust of these agreements was that by signing the agreement, a member country was then expected to conform to certain targets for carbon dioxide emissions B specifically reducing their emissions to the levels that they were at before 1990. The reason for this is that scientists point to rising levels of carbon dioxide in the atmosphere as a major cause of rising global temperatures and climate change. Canada's decision to sign the agreement brought much debate within the country. The debate ranged from how much of an effect the reduced emissions will have on affecting global climate change, to the question of the effects of reducing emissions on the Canadian economy, and whether the Canadian economy can achieve the reductions and function well. Today, its status in Canada is uncertain, since although it was signed by the Liberal government, the Conservative government elected in 2006 does not support its full implementation.Globalization Name: 15. Using the graph of Canada's trade with NAFTA countries, identify the major trends in terms of Canada's imports and exports. International Trade and Foreign Investment 16. a) In comparison to the United States, has the FTA and NAFTA been a positive or a 1. How has international trade involving Canada changed over the 50 year period in the negative experience for Canada? Explain why graph? b) In comparison to Mexico, has the FTA and NAFTA been a positive or a negative experience for Canada? Explain why. 2. a) How have the changes in Canadian exports and imports been different? c) Overall, when you combine the data regarding trade with the United States and b) How would this affect Canada's trade balance (Trade balance = Exports - Mexico, would you say that it has been more positive or more negative? Explain why. Imports) c) What does this information allow you to infer about jobs in Canada during 17. Brian Mulroney was Prime Minister for two terms with majority governments. When this time period? Explain the reasons for your inference. the Progressive Conservatives (PC) were defeated by Jean Chretien's Liberals in 1993, d) Is this a good thing or a bad thing for Canada? Explain why. the PCs were reduced to two seats from 151. Much of Mulroney's legacy as Prime Minister was due to free trade and the creation of the Goods and Services Tax (GST). If 3. What would you argue is the most important point on the graph titled "Canadian people could look back now to 1993, do you think that the Progressive Conservative International Trade 1950-2000"? Explain. party would have won more seats or less? Explain why. 4. Conduct independent research to find out what the difference is between primary, 18. Would Canada's participation in agreements like the Auto Pact or NAFTA further or secondary, and tertiary industries and give an example of each type of industry. diminish the goals of the WTO? Why? 5. Describe Canadian investment in other countries just after World War II. 19. a) Which industry is Canada most concerned with in negotiations with the WTO? b) Does the data in the graphs support the need for this concern or not? Explain. 6. In the next 25 years, how did things change? 20. How has freer trade affected Canada during the first decade after the creation of the 7. Which types of industries saw the biggest change from 1950 to 1974? World Trade Organization? Provide data to support your answer. 8. By 2000, how had things changed in terms of the types of industries that Canada Non-economic Integration invested money in around the world? 21. a) Using the map of Great Lakes / St. Lawrence Watershed as a guide, find five 9. To what extent do the patterns of foreign countries investing in Canada match the major Canadian and/or American cities in this region. patterns of Canadians investing in foreign countries? Explain your answer. b) On this basis, how important is the water quality of the Great Lakes to Canada and the United States? 10. What was the purpose of the Auto Pact? 11. a) Using the graphs of North American Car Production, identify the major trends in 22. Why was it crucial for the success of this project that both countries take part, not where cars were produced on this continent. just one or the other? b) To what extent does this match the trends in where money was invested in Canada? 23. a) In terms of carbon emissions, how does North America compare to the rest of the world? Use data to support your answer. 13. Would you argue that the Auto Pact has had a positive or a negative effect on b) What does this tell us about the importance of Kyoto to Canada? Canada? Explain why. Be sure to use specific data from the graphs to support your answer. 14. a) Using the graphs on global car production, identify which countries have had the greatest gains and losses in terms of amount of vehicles produced. b) What does this tell us about car production in general