Canada is a country of 36M as such depends on exports Canada’s exports are off about 25% due to many factors like lack of infrastructure to get goods to market, long drawn on regulatory process, lack of focus by all levels of government to push economic development and Liberals insistence to focus on social issues.

1. TRADE
AGREEMENTS
Paul Young CPA, CGA
January 23, 2018

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. TRADE
▪ Canada is a country of 36M as such depends on exports
▪ Canada’s exports are off about 25% due to many factors like lack of
infrastructure to get goods to market, long drawn on regulatory process,
lack of focus by all levels of government to push economic development
and Liberals insistence to focus on social issues.

4. AGENDA
▪ What are trade agreements?
▪ Issues with Trade Agreement
▪ Top Exporting Countries in the world % of GDP
▪ FIPA
▪ TPP
▪ China and Canada Free Trade

5. WHAT ARE TRADE AGREEMENT?
Source - https://www.britannica.com/topic/trade-agreement
Trade agreement, any contractual arrangement between states concerning their trade
relationships. Trade agreements may be bilateral or multilateral—that is, between two
states or more than two states.
For most countries international trade is regulated by unilateral barriers of several
types, including tariffs, nontariff barriers, and outright prohibitions. Trade agreements
are one way to reduce these barriers, thereby opening all parties to the benefits of
increased trade.

6. ISSUES WITH TRADE AGREEMENT
▪ Labour Regulations
▪ Environmental Standards
▪ Subsidies
▪ Cultural protection
▪ Content rules
▪ Investor protection
▪ Tariffs and Excise taxes

7. Top 20 Export Most Dependent Countries
Top 20 Export Least Dependent Countries
Canada ranks #89

8. Source - https://www.slideshare.net/paulyoungcga/what-is-fipa-foreign-investmnet-proection-act-canada-review
FIPA – FOREIGN INVESTMENT
PROTECTION AGREEMENT
• Business want protection in terms of making investment in a country.
• Government needs to streamline processes as part of supporting FDI including getting projects off
the ground
• Investors have the right to sue government, especially if government is slow when it comes to
approving projects
• Business cannot walk into a country without having proper support from their government
• FIPA is the first start in terms of trade agreements

9. TPP ISSUES
Source - http://www.cbc.ca/news/politics/apec-trans-pacific-summit-leaders-
1.4396312
• Canada has two major sticking points with TPP,
including passages on intellectual property rights
and cultural exemptions.
• Trudeau said Thursday Canada must maintain the right
to regulate, and financially support, the country's
cultural industries and not fear retribution at a trade
tribunal. Importantly, Canada has long said it must be
allowed to protect its culture — especially its minority
francophone culture — against globalization and
cultural assimilation.
Other Concerns
• Agricultural subsidies
• Automotive sector
• Labour rates
• Environmental regulations
• Human Rights

10. BLOG – CHINA AND CANADA
“Among those concerns was that further liberalizing trade could kill Canadian
businesses and jobs as companies can't compete because of lax labour standards,
lower environmental requirements, and state subsidies in China, the report says.
These Canadian groups were adamant that failing to address these issues would only
further the hollowing out of the Canadian manufacturing sector.”
▪ Source - https://www.thespec.com/news-story/7917493-report-shows-skepticism-
on-trade-with-china/ or https://www.slideshare.net/paulyoungcga/china-future-
november-2017

11. BLOG – TRADE AND CANADA
▪ Link: https://www.slideshare.net/paulyoungcga/global-merchandise-trade-canada-october-2017
▪ It never seems to amaze me to how little the left understands when it comes to both Trade Agreements and FIPA. The left continues to call out
trade deals and FIPA without truly grasping what is in those agreements.
FIPA –
▪ http://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/agreements_type-
type_accords.aspx?lang=eng#fipa. Companies are always looking at ways to expand their business as part of their return on investment.
Companies take risk as such it only makes sense there is protection with their various investments. Canada government has been sued over
the years. Canada has lost lawsuits under NAFTA to the tune $215M - http://www.iheartradio.ca/ez-rock/ez-rock-summerland/nafta-lawsuits-
target-canada-most-us-hasn-t-lost-yet-1.2742249. The $215M loss is peanuts when you look at the trade over the past 23+ years.
Liberal Party of Canada
▪ The Liberal Party of Canada is in talks with countries like India and China, but there are no trade agreements. In fact, India refuses to sign FIPA
agreement that was negotiated by previous government. You cannot have a trade deal unless you first get a FIPA agreement.
Trade Agreements
▪ Canada exports about one quarter of its GDP or about $550M. Canada needs to trade deals to open new markets for Canadian companies.
These same Canadian companies contribute to wealth distribution via various taxation. https://www.slideshare.net/paulyoungcga/wealth-
distribution-canada-corporate-tax-july-2017.

12. CHINA AND CANADA TRADE
https://www.canadianmanufacturing.com/exporting-and-
importing/time-finally-come-canada-china-free-trade-deal-
204997/
It is interesting how the Liberals bring up China in terms of
Trade. Canada already has large imbalance with China which is
not shrinking anytime soon. Here are few things to chew on
with China and getting FTA with them:
1. China’s labour and environment laws need to change
2. Canada cannot even get goods to market. China could have
been a great market for LNG, oil as well as other natural
resources.
3. We have lost allot manufacturing jobs due to many factors
including hydro rates, taxation, long regulatory process, etc.
Source - https://www.slideshare.net/paulyoungcga/china-
future-november-2017

13. NAFTA
▪ http://www.industryweek.com/economy/canada-us-trade-deal-possible-if-nafta-fails-trudeau-says?NL=IW-
07&sfvc4enews=42&cl=article_1&utm_rid=CPG03000001519274&utm_campaign=23525&utm_medium=email&elq2=b34c5
2b2b93d4b39b5ca618e4120ad64
▪ Someone should tell PM Spin that Canada has an old USA-Canada Trade Deal. http://www.international.gc.ca/trade-
commerce/trade-agreements-accords-commerciaux/agr-acc/united_states-etats_unis/fta-ale/background-
contexte.aspx?lang=eng.
▪ I am also not sure if Trump is that interested in speaking Trudeau on re-opening the 1986 trade agreement as Trudeau
continues to make poor choice in policy including foreign affairs:
▪ China and Trudeau – USA warn Trudeau about selling ownership to the Chinese -
https://www.theglobeandmail.com/news/politics/us-rebukes-canada-over-chinese-takeover-of-norsat/article35294914/
▪ Trudeau sided with Mexico instead of trying to find common ground with USA. Canada has large trade deficit with Mexico -
https://www.slideshare.net/paulyoungcga/merchandise-trade-canada-october-2017
▪ Trump is focused on USA and its economy - https://www.cnbc.com/2017/12/06/trump-defies-data-with-6-percent-gdp-
growth-forecast.html. Trudeau’s GDP numbers are falling because his government is doing little to get goods to market.
Trudeau is doing one thing good that is increasing both taxes and regulation -
https://www.slideshare.net/paulyoungcga/truth-gdp-canada-december-2017
▪ It would be nice if MSM would call Trudeau out for his various empty statements. Speeches to do get goods to market!!!

14. USA AND CANADA TRADE
▪ http://www.industryweek.com/operations/trump-might-be-right-about-trade-deficit-canada?NL=IW-
07&sfvc4enews=42&cl=article_3&utm_rid=CPG03000001519274&utm_campaign=23730&utm_medium=email&elq2=
da550f005b744478917228f4792a43af
▪
▪ Stats Canada reports merchandise shipments which ignore services areas - http://www.statcan.gc.ca/daily-
quotidien/170504/dq170504c-eng.pdf - Based on Stats Canada report there was $32B surplus with the USA
▪ Canada ships allot of oil to USA which is included in the numbers. Oil had surplus of 64B in 2016. The bulk Canada’s oil
exports go to the USA. USA heavily discount Canadian oil as part using the oil in the refining process. (i.e. low gas prices)
▪ Canada has a trade deficit in finished goods. The USA due to its economy of scale likely exports more finished goods to
Canada than Canada exports to the USA.
▪ Liberal have failed to find common ground in areas like forestry and mining. Canada and USA together could have more
influence in areas like energy, rare metals, vanadium, lithium, ores, gold, etc. Trudeau and his team have never found
common ground with the USA. The Liberals are only focus seems to be on both social issues and climate change.
▪ Canada lacks the capacity to get exports to other countries. I estimate that Canada’s exports would be 25% higher if
projects like Kinder Morgan or East-West Pipeline or in land or port expansion could be accomplished. For reach $1B in
exports there are 5,500 jobs. So, if exports were increase by say $100B then you could see 550K in new jobs.

15. CANADA AND INDIA
Source - http://www.livemint.com/Politics/QPBGS9TrzqQzYqFo7Z1laK/India-Canada-look-for-breakthrough-on-free-trade-agreement.html
1. http://www.theguardian.com/business/2016/jan/20/india-will-step-up-as-chinas-economy-
slows-says-josh-frydenberg
2. http://nextbigfuture.com/2016/01/india-will-take-longer-than-ten-
years.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot
%2Fadvancednano+%28nextbigfuture%29
India will become a key trading partner for Canada.
https://www.youtube.com/watch?v=xEw0pC89gZU
Here is the latest on India and Canada Trade/Investment:
1. http://ecocidealert.com/?p=16829 – There is 2010 FTA deal, but there are things required to be
settled as part of finalizing the deal.
2. https://www.asiapacific.ca/news/canada-gains-market-access-pork-india
3. http://www.thestar.com/news/canada/2016/01/18/wynne-downplays-browns-india-visit-as-
her-trade-mission-looms.html
India is key market for exports and should be the focus of future trade/investment deals.

16. SUMMARY
▪ Trade is important, but they have to be the right deal
▪ Too many countries provide different types of subsidies to different
sectors
▪ Poor environmental and Labour laws
▪ Government restriction on ownership
▪ Protectionism policies