Concept of Free Trade Agreement

Categories: Free Trade

The concept of Free Trade Agreement (FTA) is used widely to bound two or more countries together thus, promoting trade while removing trade barriers between the member countries. As such, it helps open and create a competitive international marketplace. Considerably, Canada is one of the countries in the US that has signed quite a significant number of FTAs since 1994 (Free Trade Agreement (FTA), 2017). Notably, the Free Trade Agreement, like any other agency, has a body that is concerned with decision making and leadership as such.

Decision-making power is often in the Constitution Act 1982, which grant both federal and the province’s powers. According to the Constitution Act, the federal has the power to navigation and shipping, federal lands and the reserved lands for natives, criminal law, sea coast and inland fishers. Conversely, the Constitution provides the province with the power to poverty and civil rights, provincially owned land and resources, and matters of local and private nature. Paelke mentions that the provincial jurisdiction in Canada complicated environmental protection.

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According to paelke, the federal has more significant environmental responsibilities towards developing the tar sands (Paelke, p287). As such, it can use its power to regulate the use of specific resources, such as forestry within its boundaries. Essentially, one of the critical areas that have brought a lot of concern in Canada is the environmental cost and burden towards development brought by the tar sands. However, certain outstanding benefits are considered against such environmental burdens. The tar sand is often a reliable and secure source of energy (Regoli, 2016).

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Despite being an unlimited resource, tar sand is relatively stable. Also, tar sand has a significant economic benefit to the country. Paelke argues that Canada had emerged amongst the highest per capita in 1990 from its rich natural resources (Paelke, p295). Particularly, workers in various tar sand operations always earn excellent wages, which helps to promote the country’s economy (Regoli, 2016). However, the two bodies often argue during decision making, especially on matters on development. Comparatively, Paelke claims that federal-provincial tension is likely to grow if the climatic changes might hold significant power in future. The two parties often differ in the incentives during decision making, and this has always posed a challenge on the action for environmental change (Barriers to Effective Climate Change Adaptation, 2012).

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Concept of Free Trade Agreement. (2021, Feb 02). Retrieved from

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