Historic Free Trade Deal Between Canada and the EU

The EU and Canada signed the comprehensive economic and trade agreement, known as Ceta, paving the way for most import duties to be removed early next year. However, the treaty needs the approval of at least 38 national and regional parliaments, including the UK’s, to take full force.

Supporters of Ceta say it will increase Canadian-EU trade by 20% and boost the EU economy by €12bn (£10.9bn) a year and Canada’s by C$12bn (£7.4bn). Canadian PM Justin Trudeau said consumers and businesses would immediately feel the benefits.

With free trade under attack from populist movements and anti-globalisation campaigners, the deal reduces Canada’s reliance on the US and gives the EU a first trade pact with a G7 economy when its credibility has taken a knock from Britain’s decision to leave.

In spite of protests against free trade, we have to acknowledge that it brings its positive results. For example, if you take North American Free Trade Agreement (NAFTA). Here are some facts from the U.S. Chamber of Commerce you don’t often hear about NAFTA:

– Exports from U.S. service industries to Mexico and Canada tripled from 1993 to 2011
– U.S. agriculture exports rose by 258 percent to Canada and 408 percent to Mexico during the same period.
– About one-third of all U.S. merchandise exports are bought by those two countries.
– And, the jobs that Mexico has gained from NAFTA often depend on supplies from U.S. manufacturers. It’s been estimated that about $36,000 is generated annually for every American factory worker through Mexican and Canadian purchases of U.S. goods.

Trans-Pacific Partnership (TPP) and CETA are waiting their turn and chance as well.

The European Microstates and Their Exports

Few people know much about microstates, though millions visit them each year. 

Economically, the microstates are urbanized and rely heavily on exporting and tourism. Although originally the microstates had poor agricultural economies, they now have “mature service economies, and most have very little heavy industry or agriculture.” The small population of the microstates pushes them to look toward exporting. The tiny nations of Europe are so small that their native populations usually do not provide a market large enough for their own industries’ products.When the world hit the era of modernization, the microstates each found one industry to specialize in, which transformed them into modern countries.

Consequently their major products are usually their major exports as well. For example, Liechtenstein, Luxembourg and Malta export specialty machinery. Thus Luxembourgs’ steel industry supplies the world’s builders with extra strong iron. Malta and Monaco export glassware. Andorra exports tobacco and furniture. Liechtenstein exports dental products (especially false teeth). San Marino exports building stone and food. As to Monaco, the countries main export products are cosmetics pharmaceuticals. Only Vatican City is prohibited by law from exporting any goods. The Vatican is too small to manufacture anything on its own. Anything that could be exported, would be “transshipped” imported goods from Italy and since goods coming into the Vatican from Italy are not taxed, but goods sold in Italy are , reselling them could easily be profitable. Precisely to prevent this, when Italy signed the treaty establishing the Vatican, all exportation was prohibited except by special permission. Needless to say, Vatican City must import all products consumed there. Similarly, except for the few products, that they can export, all the other microstates, import the rest of the items they consume.

It should be noted that all these states are currently attempting to diversify their exports so that they are less dependent on one export.

Tourism naturally became a strong industry for the states; however, most people only visit the microstates for a day and leave in the evening so it is a different type of tourism than in the rest of Europe. To encourage emigrating companies, the microstates offer tax breaks and low.