Economic Analysis on the Country Research Paper

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When looking at the importance of trade and foreign direct investment in the economy, Canada's stated policy is to sustain open markets and grant foreign companies national treatment, while securing access to foreign markets for Canadian firms (Trade policy regime: framework and objectives, 2007).

Information that is available suggests that there are significant differences in trade and investment policies and practices between the federal and provincial governments, as well as across provinces. In order to mitigate the effect of these policy differences on internal trade, the Agreement on Internal Trade (AIT), which came into effect in 1995, was established in order to reduce and eliminate barriers to the free movement of persons, goods, services and investment within Canada, and to establish an open, efficient and stable domestic market.

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The authorities indicated that provincial and territorial governments have made substantial progress in key areas of procurement, investment incentives, labour mobility, consumer-related standards, transportation, and environmental protection. Canada believes trade a key element of its economy, and has stated that its current and future growth and success depend on open world markets and a stable, predictable, and transparent trading environment. The Government practices enhanced market access for trade in goods through discussions at the bilateral, regional, and multilateral levels. The WTO is thought to be a vital element of Canada's trade policy and an important way in which to achieve Canada's market access objectives (Trade policy regime: framework and objectives, 2007)......

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