Canada and Bolivia are part of several free trade agreements: Bolivia is part of the Andean Community Free Trade Area, while Canada is part of NAFTA.
The effects of free trade in agriculture in countries like Canada, China, and Bolivia can be quite diverse. Canada is a developed, industrialized country that can better handle the negative aspects implied by trade liberalization in agriculture. The same situation does not apply to China and Bolivia that are low income countries, where free trade can have more significant effects.
The main advantages of free circulation in agriculture consist in the fact that prices would be lower, favoring the consumers. In low income countries like China and Bolivia, this would further lead to increased food consumption. In developed countries like Canada, it would lead to sustained economic growth. Large producers would also benefit from the elimination of tariff barriers. This is why large, developed countries, economic powers, are struggling to eliminate trade taxes.
Reference List
North American Free Trade Agreement (2008). United States Department of Agriculture. Retrieved December 7, 2008 at http://www.fas.usda.gov/itp/Policy/nafta/nafta.asp.
NAFTA Overview (2006). United States Department of Agriculture. Retrieved December 7, 2008 at http://www.fas.usda.gov/itp/Policy/nafta/NAFTA_Overview_2006_files/frame.htm.
Fabiosa, Jacinto F. (2008). What Effect Does the Free Trade in Agriculture Have on Developing Country Populations Around the World? Center for Agricultural and Rural Development. Iowa State University. Retrieved December 7, 2008 at http://www.card.iastate.edu/publications/DBS/PDFFiles/08wp466.pdf.
However, each stakeholder has its own interests at heart. Those interests in the long-run may be served by freer trade, but in the short-run they are driven more by political considerations. Works Cited Markheim, Daniella & Rield, Brian M. (2007) Farm Subsidies, Free Trade and the Doha Round. The Heritage Foundation. Retrieved December 11, 2008 at http://www.heritage.org/RESEARCH/BUDGET/wm1337.cfm Chang, Ha-Joon. (2007). Protectionism...the Truth on a $10 Bill. The Independent. Retrieved December 11, 2008
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North American Free Trade Agreement is one of the most important and influential international relationship formed between the U.S., Canada and Mexico, creating the largest free trade region in the world. The following pages analyze NAFTA's influence on member countries while focusing on the trade relationship between the U.S. And Mexico. The most important facts about U.S. -- Mexico trade are presented, with details on the imports, exports, and trade
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