Barriers in the Canadian Trade System

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Introduction

The successful functioning of every state should be supported by a number of factors, which help the state development. One of such factors is successful trade, both national and international. The international trade is usually supported by WTO, and the national, domestic trade should be regulated by the state. The theme of barriers to trade in Canada was taken tot by chance as this topic is considered to be interesting from the point of view that Canada is the member of world trade organizations, and the agreements, which were signed with its participation are numerous, such as FTA, NAFTA, and WTO Agreement, but the problems still remain. It may be interesting for policy makes, professors, classmates to consider the barriers in the Canadian trade system, to analyze them and to identify the reasons, which is the developed country with the conditions for trade development there are still so many barriers, which prevent not only the sphere development, but also holds back the development of the whole country. The research of the problem should be started from the identification of the barriers in the Canadian trade, then analysis of existing agreements and then the correlation of problems and agreements and identifying the reasons for problems existence. In the remainder of the paper the offers for the problem decision are going to be offered, and the variants for ways out from the current situation. The trade in Canada has all factors and backgrounds for development and the question remains why the government of the country does not use them, why the signed agreements are not involved in the problem decision, as it is the best way to regulate the situation as the legislative base is ready, it should be just related to and used.

Literature review

Mike Harris (2006) is sure that it is impossible to provide the successful political and economical life of the country without free trade, both national and international. The main barrier, which exists in modern Canadian trade, is the bankanized state of domestic market, which is fragmented by persistent inter-provincial barriers to trade” (Harris, 2006, p.53).

Douglas M. Brown (2003) provides the list of the barriers to trade, which are as follows, quantitative restrictions in agriculture, restrictions on competitions, discriminatory procurement practices, restrictions on trade in electricity, industrial and agricultural subsidies, discriminatory pricing and distribution of alcoholic beverages, and discriminatory pricing of oil and gas, which can be solved by the agreements, which were adopted, but did not come into effect (p.127).

Steven Shrybman and Canadian Centre for Policy Alternatives (2001) took the one side of barrier, which deals with technical barriers. In general, a lot of notions are introduced there, such as food safety, environmental and other regulatory standards, which are gathered in one notion, technical barriers, and Canada searches for the ways to cope with them (p.10).

Charles F. Doran’s (2001) attention is paid to the fact of international trade barriers, which may be supported by the tension between states, and the problems in their economical or political relations. Moreover, the domestic market problems may appear with some interference with trade abroad, and the changes, which may occur there (Doran, 2001, p.173).

The may report from 2006 of The Conference Board of Canada, with the results of the investigation of the trade barriers inform that high tariffs on import remain the most important barrier for some, which exists in the Canadian trade system. The domestic trade barrier is that Mexicans imports are free, and their products are cheaper than others, that create unfair competition (p.6).

References

Brown, Douglas M. 2003. Market Rules: Economic Union Reform and Intergovernmental Policy-Making in Australia and Canada. McGill-Queen’s Press – MQUP: Montreal.

Doran, Charles F. 2001. Why Canadian unity matters and why Americans care: democratic pluralism at risk. University of Toronto Press: Toronto.

Harris, Mike. 2006. Building Prosperity in a Canada Strong and Free. The Fraser Institute: Vancouver.

Shrybman, Steven, Canadian Centre for Policy Alternatives. 2001. The World Trade Organization: a citizen’s guide. James Lorimer & Company: Toronto.

The Conference Board of Canada. 2006. Death by a thousand paper cuts: the effect of barriers to competition on Canadian productivity. The Canada Project. Web.

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