Canada's Greenhouse

As Canada continues to grow and export levels increase, pollution continues to rise at a rapid rate. According to Organization for Economic Cooperation and Development (OECD) numbers Canada is the ninth worst emitter of carbon dioxide on a GDP basis. By 2004 Canada’s GDP had risen a remarkable 45%, with population rising at a 15% rate by that same year, emissions had risen a staggering 27%. John Bennett an adviser with the Sierra Club claimed that one of the reasons for this increase is due to a surge in the carbon energy exports and also a lack of political will to cut emissions

The lack of will to cut emissions could prove costly, maybe not in the shot run but the burden could that of the generation and with the global climate showing all kinds of radical behavior, it might be too late. Canada should try and invest in alternate sources of energy as carbon energy which is not renewable may in the long run have an adverse impact on their GDP. Although the Kyoto became law in 2005 and with its inefficiencies, Canada should try and participate in alternate clean act agreements to help curb emissions.

Free Trade with EFTA

There has been a push for the trade negotiations between Canada and European Free Trade Association (EFTA) to commence. The countries in EFTA are Switzerland, Norway, Liechenstein and Iceland. They have been primarily Canada's sixth biggest importer of Canadian goods. The Trade is expected to eliminate a substantial amount of tax in millions of dollars between the two economies and it is also seen as a gateway to other European countries. Canada intends to protect its vital interests in areas such as culture, health care and education while any agreements will be consistent with the rules of the World Trade Organization (WTO).http://www.dfait-maeci.gc.ca/tna-nac/efta2-en.asp.

It is important for Canada to safeguard its vital interest in those areas, it might conflict with part of the agreements with the EFTA. This might cause a delay in the agreement. It is beneficial to the both countries in eliminating trade taxes but along with free trade agreements comes a challenge in adopting foreign traits and charachteristics whihc might go against the Canadian philosophy. It is too Canada's advantage for the agreement to work to furhter boost its opportunity to venture further into other European countries.

Canadian lumber imports slapped duty by U.S Customs

The U.S imposed a duty tax of 29% on Canada's Softwood lumber. The action comes as a result of The U.S accusing the Canadian government of unfairly subsidizing the Lumber companies. The low rate charged by the Canadian government for cutting on crowned-owned land is deemed as the "unfair" foreign competition.

The duty imposed has hurt the Canadian lumber company profit share as well altered the amount of employed people. Apparently there has been thousand of job losses that has already taken place since the preliminary duty tax was imposed. This is great for the American domestic farmers as they can then set a price that will enable producer profit to be achieved. As for the U.S consumer they might have to pay more for the lumber they were getting cheaper without the duty tax. As for the American government, they get the revenue from the imposed duty tax. This could hurt the trade relationships between the two countries as Canada could then retaliate by imposing some sort of tax to some of the U.S imported goods.

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