5A. Trade Organizations & Agreements.pdf

Trade Organizations & Agreements Learning Objectives - describe international agreements and organizations that have influenced global business activity (e.g., North American Free Trade Agreement,Asia-Pacific Economic Cooperation; European Union; International Monetary Fund, Organ...

Trade Organizations & Agreements Learning Objectives - describe international agreements and organizations that have influenced global business activity (e.g., North American Free Trade Agreement,Asia-Pacific Economic Cooperation; European Union; International Monetary Fund, Organization for Economic Cooperation and Development, World Trade Organization) - describe Canada’s involvement in them; Trade Agreements In the interconnected world of international business, various agreements and organizations play pivotal roles in shaping trade, economic policies, and business practices - Trade organizations and trade agreements exist to promote and support the growth of trade. - They are also crucial in establishing and maintaining peaceful relations. The World Trade Organization Its purpose is to regulate and liberalize trade. It replaced the General Agreement on Tariffs and Trade in 1995, which was formed after World War II in the hopes of promoting international peace and reducing protectionist policies. United Nations The United Nations (UN) is an international organization founded in 1945, after World War II, to promote peace, security, and cooperation among countries. It serves as a platform for dialogue and collaboration to address global challenges and improve the lives of people worldwide. United Nations Objectives 1. Maintaining International Peace and Security: The UN works to prevent conflicts and mediate disputes to promote global stability. 2. Promoting Sustainable Development: The UN advocates for economic growth, social inclusion, and environmental protection through initiatives like the Sustainable Development Goals (SDGs). 3. Protecting Human Rights: The UN promotes and protects human rights globally, addressing issues such as discrimination, violence, and inequality. 4. Providing Humanitarian Aid: The UN coordinates international responses to humanitarian crises, providing assistance to those affected by conflicts, natural disasters, and other emergencies. International Monetary Fund The IMF is an international organization established in 1944 to promote global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty. - Canada is a member of the IMF and contributes to its funding and governance. The country benefits from the IMF's economic assessments and recommendations, which help inform Canadian economic policies. Influence on Global Business - Financial Stability: The IMF provides financial assistance and policy advice to member countries, helping stabilize economies and promote sustainable growth. - Economic Surveillance: The organization monitors global economic trends, providing insights that influence business decisions. The World Bank The World Bank is an international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects. - It aims to reduce poverty and promote sustainable economic development. Through financial assistance, technical expertise, and research, it helps countries implement effective policies and projects that can lead to sustainable growth and improved living standards. Global Influence The G7 is an informal grouping of advanced democracies that meets annually to coordinate global economic policy and address other transnational issues. - Due to internal divisions and the rise of alternative institutions such as the G20, some experts have questioned the G7’s relevance. Tax Agreements Canada has established tax treaties or agreements with countries throughout the world. A tax treaty is created to prevent tax evasion and to prevent double taxation for people who would pay taxes in Canada and another country on the same income. The treaty determines how much tax each country can collect on income received from pensions, wages, salaries, or interest. Canada has signed tax treaties with 92 other countries, Canada’s Types of Trade Agreements Trading bloc - is a group of countries that share the same trade interests. Types of Agreements: Regional - involving groups of countries (EU and ASEAN) Bi Lateral - involving Canada and one other country or group Canada’s trade agreements are: Trade and investment agreements USMCA Trade Agreement The United States-Mexico-Canada Agreement (USMCA) is a trade agreement that replaced the North American Free Trade Agreement (NAFTA). - The USMCA aims to enhance trade and economic cooperation among the three North American countries: the United States, Canada, and Mexico. Key Objectives of the USMCA 1. Trade Balance and Fairness: The agreement seeks to create a more balanced trade environment by addressing trade deficits and promoting fair competition among member countries. 2. Economic Growth: By reducing trade barriers and enhancing market access, the USMCA aims to stimulate economic growth and create jobs in all three countries. 3. Modernization: The agreement incorporates modern trade practices, addressing issues that were not present during the NAFTA negotiations, such as digital trade and intellectual property rights. CETA CETA -The Comprehensive Economic and Trade Agreement is a treaty between Canada and the European Union. The agreement will eliminate 98% of tariffs between Canada and the EU. Asia Pacific Economic Cooperation Asia-Pacific Economic Cooperation is an organization that promotes free trade among its member countries. Includes over 20 Member Economies. Canada has been an active participant in APEC, advocating for trade liberalization and regional economic integration. - Canadian businesses benefit from APEC initiatives that enhance market access and promote investment opportunities in the Asia-Pacific region. Trans-Pacific Partnership This controversial trade agreement would create a free trade zone among the member countries, representing more than 13% of the global economy. - The 11 countries involved have agreed to proceed with negotiations despite the withdrawal of the U.S. in January 2017. May also be referred to as CPTPP - Comprehensive and Progressive Agreement for Trans-Pacific Partnership