Canada’s Links to the World

1. Canada’s Links to the World A presentation by grade 5/6

2. What does it mean to trade? Trade means to buy, sell and exchange goods (products) and services for other goods and services, or for money. A good is something you can use (e.g., video game) or consume (e.g, cookies). Other examples include: CDs, books, shoes, clothing, cars, etc. A service is people working (like a job). For example: a doctor, teacher, mechanic, farmer, policeman, etc.

3. Why does Canada Trade with other Countries? Canada trades with other countries because: • One country has something that another country wants; • We might not have enough of that product or resource; • Other countries have products that Canada cannot produce; • Some countries can make products for less money;

4. What is the Difference between Imports and Exports? Imports Exports Resources that we receive from other countries. To receive a good from another country. Products that come IN to our country. Sugar cane, clothing, bananas, oranges, cars and car parts, and shoes, are just some of the examples of products that Canada imports. Resources that Canada GIVES to other countries. Products that LEAVE our country. Maple syrup, oil, wheat, forestry products, natural gas, and metals are just some of the examples of products that Canada exports.

5. What Countries does Canada Trade with?

6. Trading Game - discussion During the game, you were experiencing international trade. International trade is when trading takes place between countries. Canada depends on international trade. However, there is a cost to trading. Tariffs are taxes paid on goods coming into a country. Therefore, these goods are more expensive than locally produced goods. • Did your strategy trade throughout the game? • Was there a country you traded with the most? Why? • What was the most difficult thing about trading? • Do you think we could have done anything to make the trading process easier? Canada is part of many trade organizations. Trade organizations refer to a group of countries that work together to achieve a common goal…promote trade and economic growth. By being a member of a trade organization, countries often engage in trade agreements.

7. Trade Agreements • Trade agreements are legal documents that are signed by representatives from participating countries. • Trade agreements are important because it specifies what is being traded, how, where, when, and the costs of the products. • Both countries must agree to the terms outlined in the document and sign it. • Trade organizations monitor the agreements, ensure that the rules are followed, and settle any disagreements that arise.

8. Trade Organizations WTO (World Trade Organization) FTAA (Free Trade of the Americas) Membership of 157 countries Goal is to ensure that trade flows smoothly between countries Deals with rules of fair trade and settles disputes between countries Membership of 34 countries Goal is to encourage and increase trade between member countries One benefit of belonging to this organization is the lowering or elimination of tariffs on goods traded between member countries

9. Trade Organizations NAFTA (North American Free Trade Agreement) CCFTA (Canada-Chile Free Trade Agreement Membership of 3 countries: Canada, USA, and Mexico Goal is to make it easier for these three countries to trade with each other Allows Canada to do business with Chile and reduce its dependency on trading with the USA Removes tariffs on 75% of Canadian goods that are sold in Chile