Canada is currently in negotiations to sign a free trade deal with Europe in the coming months and just what it will be the content of this agreement is anybody’s guess, at this time. Regardless of the details, the Canada-EU Comprehensive Economic and Trade Agreement (CETA), will be a major turning point in the history of Canadian foreign trade. Just as the North American Free Trade Deal (NAFTA) has had some lingering effects (both positive and negative) on Canadian businesses and workforce, this new deal with Europe will undoubtedly have a profound effect, moving forward into the future.
It almost seems that every month or so, a new global free trade agreement is being negotiated and signed by two or more countries in the world, in an ongoing effort to grow their shared economic prospects. Just like any particular deal of any kind, the best deal is when both parties benefit equally, However, with virtually all these international trade agreements, it usually takes many years to come to any meaningful kind of determination, as to which country benefited most. No sense trying to speculate about CETA just yet. But rest assured, just like investors everywhere, both sides are trying to enjoy a great investing experience by negotiating as much as they can; in the long-term deal.
The global economy has really started to become a truly global economy, that is encompassing most of the world’s nations. There is a veritable network of trade agreements signed between participating countries and these individual agreements have encouraged more international trade that is relatively less expensive (with the reduction of tariffs) for involved parties but also they have resulted in more prospects for exports as well as imports and many countries with these free trade agreements have already begun to prosper as a result.
These trade agreements have been one major reason why the shipping industry has had to restructure it’s trade routes and port infrastructures in order to become more efficient and effective at meeting the needs of the growing global economy. They almost did not have a choice as in the last twenty five years, the global economy has grown by leaps and bounds and continues to increase in value and boundaries as the world heads toward an economic boom before 2020 according to some industry analysts. Overall, Free trade agreements between countries are a good thing for the global economy. They simply make it easier and more appealing for businesses and investors who wish to invest and conduct business in a foreign country, that (obviously) has a shared interest in their long-term investment success. In the end, it is the entire global economy that ultimately benefits.