Employment at a Major Canadian Manufacturing-Sample for Students

Question: You and your colleagues have just commenced employment at a major Canadian manufacturing company. You and your project team are currently working in the Special Projects division of the Strategy and Business Development Office. You have been tasked to prepare the following Business Report which will enable the company to know and understand the major international, regional and global trade agreements that are in place. Identify each trade agreement, rational for its creation (why), scope of the agreement as in countries involved, areas of trade. We will brainstorm in class a number of the agreements but it is for your team to brainstorm and research each of these agreements. Answer: Purpose of the report: Canada is one of the developed nations, which is highly associated with the international trade and almost 75% of its GDP comes from the international trade (Charbonneau, Munnik Murphy, 2018). One of the major sectors that provide almost 70% of the Canadian GDP is the manufacturing industry (Kleinaltenkamp, 2018). In this context, this report is meant to analyze and provide insight details regarding the regional, international and global trade agreement to the Canadian manufacturing firm. Among many international agreements, Trans Pacific Partnership (TPP) and Comprehensive Economic and Trade agreement (CETA) are the two important international trade agreements that fit with the motive of the said manufacturing industry (Lysenko Schwartz, 2015). Rational for creation of the chosen agreement: TPP: Canadian manufacturing sector is a growing industry, which is facing boost in the recent years (Behrens Bougna, 2015). Presence of NAFTA has helped the manufacturing industry largely; however, it has failed to reach in the Asian market. With the help of the TPP agreement Canadian manufacturing industry can enhance its business to the Asian countries and strong disciplined structure of the trade agreement will enhance the trade scope in EU countries and US states as shown in the figure 2 (appendix) (Mukhopadhyay Thomassin, 2018). On the other hand it is expected to reduce the trade barriers in the US market on behalf of the Canadian industries. CETA: Comprehensive Economic and Trade agreement is aimed to provide important business facilities to both the EU and the Canadian manufacturing firms. It will act as the gateway of free trade to the non-EU and EU business houses to invest more in the Canadian firms. CETA will eliminate the tariff on Canadian goods and services in the EU market by 98% as compared to the present 25% as shown in the figure 1 (appendix) (Collins, 2015). According to the same source, agricultural sector will be liberalized to 93.6% and it will boost the Canadian automotive sector. Investment review threshold will be enhanced from 600 Canadian dollars to 1.5 billion Canadian dollars leading to better holding in EU mark by the Canadian business houses (Lysenko Schwartz, 2015). Suggestions for the agreement: TPP: TPP in their very nature is anti-democratic according to the Green Party of Canada and the several clauses of the agreement are same as the prevailing NAFTA agreement (Baker Geddes, 2015). Besides this, TPP agreement does not provide any clause regarding the climate change, which may hamper the 15 billion Canadian dollars arbitration suit against US, launched under the NAFTA agreement (Hufbauer Jung, 2017). Besides these, there are various issues that need to be considered by the TPP model in order to making it robust and ideal for the Canadian manufacturers. CETA: According to the Mertinis (2014), CETA is expected to hamper the local job creation and public service as well as the manufacturing sectors, which are the lifeline of the Canadian economy. Moreover, CETA can hamper the health care service of the country and lack of clauses that address the environmental issues will hamper the Canadian climate as expected by Kohler storm (2016). CETA agreement needs to address these issues, and make it liberalized for both the participating parties to make it suitable for implementation. Conclusion: Considering the issues related with CETA and TPP agreements it has found the existing NAFTA agreement and other bilateral agreements are serving the Canadian manufacturing sectors well. Bringing in changes in the economy in order to implementing the chosen agreements, during the growth stages of the economy will not be the beneficial as expected. Bibliography: Baker, B. K., Geddes, K. (2015). Corporate power unbound: investor-state arbitration of IP monopolies on medicines-Eli Lilly v. Canada and the Trans-Pacific Partnership Agreement.J. Intell. Prop. L.,23, 1. Behrens, K., Bougna, T. (2015). An anatomy of the geographical concentration of Canadian manufacturing industries.Regional Science and Urban Economics,51, 47-69. CETA is expected to hamper the local job creation Charbonneau, K. B., de Munnik, D., Murphy, L. (2018).Canadas Experience with Trade Policy(No. 18-1). Collins, D. (2015). Globalized Localism: Canada's Government Procurement Commitments Under the CETA. Hufbauer, G., Jung, E. (2017). NAFTA Renegotiation: US Offensive and Defensive Interests vis--vis Canada.17-2 A Path Forward for NAFTA, 50. Kleinaltenkamp, M. (2018). Peter LaPlacaThe best marketer of industrial and B2B marketing research.Industrial Marketing Management. Kohler, P., Storm, S. (2016). CETA without Blinders: How Cutting Trade Costs and More Will Cause Unemployment, Inequality, and Welfare Losses.International Journal of Political Economy,45(4), 257-293. Lysenko, D., Schwartz, S. (2015). Does Canada Need Trade Adjustment Assistance?.IRPP Study, (57), 1. Mukhopadhyay, K., Thomassin, P. J. (2018). The impact of Trans-Pacific Partnership agreement on the Canadian economy.Journal of Economic Structures,7(1), 5.