Free Trade across the Puddle So Ie) v Sse s§$s rs aSz 58 ow SD oy! Sao > =5 Iss a SER Wn FSS sos £& : S Nicole Halseth News Editor Folowns in the footsteps of numerous similar initiatives around the world, Canada and the EU have signed a free-trade deal that has been in the agreement for both the European Union and Canada.” However, before the agreement is actually put into place, it must still be ratified by the parliaments of each EU works for some time now. The purpose of the agreement is to bolster growth time before citizens on either side of and employment within both areas. the Atlantic start to feel any effects. At a recent meeting in Brussels, Prime Minister Harper and European Commission President, Jose Manuel Barroso, put together the agreement. According to an article on the BBC website, Mr. Barroso claims the deal represents a "breakthrough in negotiations’ to achieve "a great Once it is approved, the deal is set to make investing and selling between than it has been in the past. It wil do this by reportedly lowering tariffs, Nicole Halseth News Editor S government employees are flocking back to work in the hundreds of thousands, after President emerging from the situation, but that the US would be able to “bounce back” nonetheless. This measure follows 16 days of government shutdown atter Congress Barack Obama signed a law to end the 16-day government shutdown and extend the US debt limit. could not agree on a budget. Under this measure, which was approved in until 15 January 2014, and the US Treasury's borrowing authority has been extended to 7 February. This buys the US some time to hopefully This deal came just in the nick of time, mere hours before the US was set to default on its debt and run out of money fo pay its extensive bills. According to an article on the BBC World News website, Obama said that “there are resolve some of their outstanding ISSUES. The deal does not, however, resolve NO wINNEFs the initial issue that so fiercely divided initiated the budgetary disagreement, and consequent shutdown, as a way fo pressure the member state. As such, it may be some companies in both Canada and any of the EU's 28 member states much easier streamlining regulation, and decreasing US Government: Washington, the government is funded the two political parties in government (the Republicans and the Democrats). A distinct faction of the Republicans red tape. From an economical and political standpoint, this move is likely to be beneficial. The EU is Canada’s largest trading partner behind the United States, putting it at our second largest trading partner in total. According to the article, Prime Minister Harper claimed that the agreement is "the biggest (trade) deal our country has ever made.” It will reportedly open Canada to an aggregate market potential of 500 million people in the EU. This is a landmark value, as it makes this new agreement bigger than the North American Free Trade Agreement (NAFTA) signed with the US and Mexico. It will also reportedly greatly benefit the EU economy. According to the European Commission, the deal is expected to increase annual bilateral trade in goods and services around a fifth of what it is currently, to 257billion euros ($35billion; £21 .7billion). This new agreement with Canada is part of a larger initiative spearheaded by the European Commission to negotiate trade agreements with over government into stalling Obama's healthcare reform (aka ‘Obamacare’). Despite their objections, this healthcare reform went forward. Instead, according to an article on the BBC website, this deal “establishes a cross- party committee of legislators tasked with crafting a long-term budget deal and reporting back to Congress by mid-December.” In an article on the BBC World News website, “Mr. Obama thanked congressional leaders for their helo ending the government shutdown and raising the debt limit, but said both had ‘inflicted completely unnecessary damage on our economy.” Additionally, President Obama goes on to say that “the American people are completely fed up with Washington," and "how business is done in this town has to change.’ He stated that the focus of politicians should be on the economy and creating responsible budgets. Particularly, President Obama had this to say about the Republicans who New: 80 countries around the world, on behalf of its member states. This comes after the collapse of the last major round of global trade talks in Doha. Though this free-trade deal may benefit Canada and the EU economically and politically, free- trade deals around the world have been controversial since their origin. Certainly, the North American Free Trade Agreement has spurred countless rounds of debate and disagreement since it was created in January of 1994, Much of this disagreement comes from the effects of free-trade on the citizens of each country involved. Though it may be a positive move politically and economically, the social effects of such a move are difficult to measure and may not always be positive. Though it may not impact you directly, the ripple effect of free-trade in all its forms disseminates throughout the country in the prices and availability of goods, among other things. In the next decade, this new free-trade deal may become increasingly significant. Back in Business initiated this shutdown on the basis of the aforementioned policy and budget disagreement: "Go out there and win an election.” Though the shutdown has ended, it has been forecasted that it will have cost the US economy billions of dollars. Additionally, though government workers affected by the situation will receive back pay, many were stil severely impacted by the delay in their salaries. The shutdown also had additional effects, such as: denying tourists and visitors access to national sites of interest, delaying various medical research projects, as well as delaying official paperwork such as visa applications, business permits, wedding certificates, and safety inspections. As a result of the far-reaching and varied nature of the shutdown, it may be some time before the full impact can be assessed, including its impact on Canada and the Canadian economy, if it can be at all.