Trade Organizations and Agreements Overview

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Questions and Answers

What is one of the main goals of the USMCA?

To limit market access among member countries
To prevent digital trade practices
To stimulate economic growth and create jobs (correct)
To eliminate all trade tariffs in North America

Which trade agreement focuses on eliminating tariffs between Canada and the EU?

AFTA
USMCA
CETA (correct)
TPP

What is a significant feature of CETA?

It proposes strict immigration laws
It discourages digital trade practices
It eliminates most tariffs between Canada and the EU (correct)
It includes an expansive labor agreement

What does the Asia-Pacific Economic Cooperation (APEC) promote?

Free trade and regional economic integration (D) Signup and view all the answers

What was the Trans-Pacific Partnership referred to after the US withdrawal?

CPTPP (C) Signup and view all the answers

What is the primary purpose of the World Trade Organization?

To regulate and liberalize trade (C) Signup and view all the answers

Which statement accurately describes the role of the United Nations?

It serves as a platform for global cooperation (A) Signup and view all the answers

How does Canada benefit from its membership in the International Monetary Fund?

By receiving economic assessments to inform its policies (C) Signup and view all the answers

What organization replaced the General Agreement on Tariffs and Trade in 1995?

World Trade Organization (A) Signup and view all the answers

Which of the following is NOT one of the United Nations' objectives?

Facilitating economic trade agreements (B) Signup and view all the answers

What is one of the roles of trade organizations and agreements?

To support the growth of trade (C) Signup and view all the answers

What is a major goal of the International Monetary Fund?

To ensure financial stability globally (A) Signup and view all the answers

Which of the following organizations is focused on reducing protectionist policies?

World Trade Organization (D) Signup and view all the answers

What is one of the primary functions of the IMF?

To monitor global economic trends. (D) Signup and view all the answers

What is the main goal of the World Bank?

To reduce poverty and promote sustainable economic development. (A) Signup and view all the answers

Which group has seen its relevance questioned due to the rise of alternative institutions?

G7. (A) Signup and view all the answers

What is the purpose of a tax treaty?

To prevent tax evasion and avoid double taxation. (A) Signup and view all the answers

What type of trade agreement involves Canada and one other country?

Bilateral Agreement. (A) Signup and view all the answers

What agreement replaced the North American Free Trade Agreement (NAFTA)?

USMCA Agreement. (A) Signup and view all the answers

What objective does the USMCA aim to achieve?

To create a balanced trade environment. (B) Signup and view all the answers

What is a trading bloc?

A group of countries sharing similar trade interests. (C) Signup and view all the answers

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Study Notes

Trade Organizations and Agreements

Governments use trade agreements to promote international trade and economic growth.
Trade agreements establish rules for trade and investment in goods and services.
Trade agreements can also be used to promote peaceful relationships between countries.

International Organizations

The World Trade Organization (WTO) is a global organization that regulates and liberalizes international trade.
The WTO replaced the General Agreement on Tariffs and Trade (GATT) in 1995.
The United Nations (UN) is an international organization that promotes peace, security, and cooperation among countries.
The International Monetary Fund (IMF) is an international organization founded in 1944 to support global monetary cooperation and reduce poverty.
The World Bank is an international financial institution that provides loans and grants to poorer countries for capital projects.
The G7 is an informal grouping of advanced democracies that meets annually to coordinate global economic policy.

Canada’s Involvement in International Organizations

Canada is a member of the WTO, UN, IMF, and World Bank.
Canada benefits from the economic assessments and recommendations of the IMF, which help inform Canadian economic policies.
Canada has bilateral tax treaties with 92 countries to prevent tax evasion and reduce double taxation.

Types of Trade Agreements

Regional agreements involve groups of countries, such as the European Union (EU) and the Association of Southeast Asian Nations (ASEAN).
Bilateral agreements involve two countries or groups of countries.

Trade & Investment Agreements

The United States-Mexico-Canada Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA).
The USMCA aims to enhance trade and economic cooperation among the United States, Canada, and Mexico.
The Comprehensive Economic and Trade Agreement (CETA) is a treaty between Canada and the European Union.
CETA will eliminate 98% of tariffs between Canada and the EU.
The Asia-Pacific Economic Cooperation (APEC) is an organization that promotes free trade among its member countries.
The Trans-Pacific Partnership (TPP) is a trade agreement that creates a free trade zone among its member countries.
The TPP also known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).