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Class 8: Wine. Agenda. The Canadian and Ontario Wine Industry International Trade NAFTA Trade and Wine (Case). Ontario Wine. Ontario Icewine. Ontario Wine.

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Presentation Transcript

Agenda
Agenda

The Canadian and Ontario Wine Industry

International Trade

NAFTA

Trade and Wine (Case)




Ontario wine
Ontario Wine

Ontario's wine regions are right in the middle of the northern grape-growing belt – between 41° and 44° north. You may find it hard to believe, but that puts southern Ontario just south of the famous Bordeaux Region in France, and parallel with northern California wine regions.




The canadian wine industry
The Canadian Wine Industry

  • The Canadian Wine Industry, compared to other parts of the world, is relatively new.

  • Early wineries using local grapes were first started in the early 1800’s. The first commercial winery was started in Pelee Island in 1866.

  • There are wineries in many different provinces, with the main two wine producing provinces being Ontario and British Columbia.

    • The Vintners Quality Alliance (VQA), the Canadian regulatory and appellation system, only recognizes wines from these two provinces.


The canadian wine industry1
The Canadian Wine Industry

  • The Canadian Wine Industry suffered a major set back with Prohibition.

  • Regulation of alcohol was transferred to the provinces in 1927.

    • Ontario passed a moratorium on the issuance of new winery licences.

  • Many of the larger wineries consolidated by buying up some of the smaller licencees.

  • By 1974, there were only 6 wineries left.


The ontario wine industry
The Ontario Wine Industry

  • Don Ziraldo and Karl Kaiser were the first to be granted a licence to open a winery since 1929. They received their licence in 1974.

  • They introduced the first European grape varieties (Vitisvinifera) to Ontario by introducing Riesling, Chardonnay and Gamay grapes.

  • Prior to this, inferior local grape varieties were used to produce wines.


The basic problem of winemaking in canada

But they turn into Baby Duck Wine

The basic problem of winemaking in Canada

Lambrusco grapes grow well in cold climates


The ontario wine industry1
The Ontario Wine Industry

  • The Ontario Wine Industry is relegated to a few select areas of the Province:

    • Lake Erie North Shore/Pelee Island

    • Niagara Region

    • Prince Edward County


Industry facts wine in ontario
Industry Facts—Wine in Ontario

* The grape and wine sector generates approximately 14,000 jobs in Ontario.

* It generates more than $100 million in direct wages and salaries.

* In 2010, the total number of grape vines in Ontario exceeded 15 million.

* In 2007, the wine industry generated $602 million in tax revenues for the province and $3.3B in economic impacts

23


Vintner s quality alliance
Vintner’s Quality Alliance

  • The VQA Act was enacted in 2000.

  • VQA Ontario acts as the regulatory body for wine.

    • administers Ontario’s wine appellation system.

    • primary functions are wine testing, audits, inspections, compliance.


Wine appellations
Wine Appellations

  • These are defined geographic areas where grapes and wine are grown.

  • They often have additional restrictions including the variety of grapes can be grown for wine, the level of alcohol and other restrictions.

  • Often the appellation begins to be used to describe the wine itself.

    • In order to be legally called champagne, the wine in question must be from the Champagne region of France.

  • The first exclusive appellation is Chianti, in Italy, formed in 1716.


The lcbo
The LCBO

  • LCBO originally started in 1927 to promote temperance as well as generate revenues; $12.3 million in sales the first year with 86 stores

  • Original stores were hidden, with product located in the back away from the customers

  • Slowly evolved over the years; in 1988 the government challenged the LCBO to become a major retailer

  • LCBO in 2009-10 provided the Government of Ontario with a dividend of $1.41 billion. It employs 6,500 people, has 613 stores in Ontario and had sales of $4.34 billion


Lcbo support for ontario wines
LCBO Support For Ontario Wines

  • Large product selection: LCBO WINES category offers 530 Ontario-produced wines, including 300 VQA wines.

  • VINTAGES, LCBO’s fine wine and premium spirits business unit, offered another 252 Ontario VQA wines, including 22 available year-round through the VINTAGES Essentials program.

  • In fiscal 2010-11, the LCBO sold more than 900 different Ontario VQA wines from over 80 different wineries.


Lcbo support for ontario wines1
LCBO Support For Ontario Wines

  • Prominent shelf space/location: Ontario wines are allocated almost seven per cent more shelf space than their share of sales in LCBO stores.

  • They are prominently located at the front of most stores and there are specially-designed VQA wine displays in the 250 largest LCBO outlets.

  • In 2009, LCBO expanded VQA shelving by 20 per cent (4,000 linear feet more) in these stores.


Lcbo support for ontario wines2
LCBO Support For Ontario Wines

  • WOW (World of Ontario Wines) Leaders: LCBO employees in 300 LCBO stores are specially-trained to promote Ontario wines with customers.

  • Small winery support: LCBO’s Go-to-Market program allows smaller Ontario wineries to direct deliver products to a small number of LCBO stores and the Wines to Watch program provides in-store presence for smaller Ontario wineries, helping them build sales for wider distribution.

  • The VINTAGES’ Go-to-Market program also gives access to VQA wines from smaller, quality-focused Ontario wineries. This program has been expanded in the last year to include more participating wineries and LCBO store locations.

  • LCBO sales of all Ontario-produced wines in 2010-11 totalled almost $320 million, almost seven per cent higher than the previous year.

    http://www.lcbo.com/lcbo-ear/media_releases/content?content_id=1324


Wine trade
Wine Trade

  • In Canada in 2007, enough grapes were processed to make 56.4 million litres of Canadian wine.

  • By comparison, Canadian wineries imported an addition 77 million litres of bulk wine for blending.

  • A further 200 million litres of bottle wines were imported to sell to Canadian consumers.


Wine trade1
Wine Trade

  • Canadian Wines have less than a 50% share of the Canadian Market.

    • Canada is one of the few wine producers that do not dominate its domestic market

  • Canadian wine makers are dominated by two large producers with a large number of smaller players.

    • And one of those large producers was purchased by an American company in 2006, leaving only one truly Canadian large producer.


Wine trade2
Wine Trade

  • Canadian Wine Imports were over $1.5 billion in 2006.

  • Canadian Wineries produced approximately $784.5 million worth of wines

    • $749.5 million was domestic sales.

    • Only $35 million was exported.


Canadians are importing more wine
Canadians are importing more wine

Exports and Imports of Wine, 1997 - 2007

http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1172244915663&lang=eng

33


Lcbo sales of wine
LCBO Sales of Wine

  • Total wine sales, 2009-2010: $1.121 billion.

  • VQA Wine sales were up 19%

  • Domestic wine sales account for 28% of all wine sales at the LCBO


Canadian wine consumption
Canadian Wine Consumption

  • Annual per capita consumption increased between 2000 and 2007, growing from 11.3 to 14.6 litres.

  • This is still relatively small to other nations.

    • In France and Italy, wine consumption is four times greater than it is in Canada.

  • Brewing outperforms wine in Canada.



Wine production by country 2009
Wine Production by country, 2009

  • France 4,700,000,000 litres

  • Italy 4,650,000,000 litres

  • Spain 3,800,000,000 litres

  • United States 2,777,200,000 litres

  • Argentina 1,210,000,000 litres

  • Australia 1,171,000,000 litres

  • Chile 978,000,000 litres

  • Germany 928,000,000 litres

  • South Africa 780,700,000 litres

  • Portugal 600,000,000 litres

    33. Canada 50,000,000 litres


Not a world power in wine
Not a world power in wine

http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1172244915663&lang=eng

38


Global wine production
Global Wine Production

  • The Canadian Wine Industry is dwarfed by such wine producing giants such as Slovenia (83,000,000 litres) Croatia (120,000,000 litres), and Moldova (397,600,000)!

  • Canada produces a small volume of wine by world standards with about 8,102 hectares of vineyards in 2007, compared to the EU which has 3.5 million hectares, of which France alone has 2.5 million hectares.


The principles that influence international trade
The Principles that influence International Trade.

  • “The benefits of international trade result in a more efficient employment of the productive resources of the world.”

    John Stuart Mill


Reasons for trade
Reasons for Trade

  • Resources are not completely distributed across the globe.

  • The climate and terrain of a state.

  • The skills of its labor force.

  • The advantages of specialization


General agreement on tariffs and trade
General Agreement on Tariffs and Trade

First developed in 1947 as a means to reduce trade barriers.

The countries who signed GATT negotiated new trade agreements that all would enter into.

Each such set of agreements was called a "round".

Each of these agreements bound the members to reduce certain tariffs, with special-case treatments of individual products, and with exceptions and modifications for each country.


General agreement on tariffs and trade1
General Agreement on Tariffs and Trade

Goal was to minimize new existing trade barriers.

Reduce import tariffs and quotas.

To abolish preferential trade agreements between member countries.

Tariff concessions were negotiated on the principle of reciprocity (you scratch my back I’ll scratch yours).


World trade organization wto
World Trade Organization (WTO)

  • The World Trade Organization (WTO) is an international rules-based and member driven organization which oversees a large number of agreements defining the "rules of trade" between its member states.

  • It operates with the broad goal of reducing or abolishing international trade barriers.

  • It ensures trade among nations operates smoothly, freely and orderly.

    http://en.wikipedia.org/wiki/WTO


Trading blocs or communities
Trading Blocs or Communities

  • To promote trade among countries that have common economic and political interest or are located in a particular region.

  • They favor member counties over non-member countries.

    • The Commonwealth of Nations

    • The North American Free Trade Agreement

    • European Union


Fta election 1988 and wine industry
FTA Election 1988 and Wine Industry

  • http://www.youtube.com/watch?v=gyYjRmM7RDY

  • http://www.cbc.ca/archives/categories/lifestyle/food/canadas-wine-renaissance/free-trade-crisis-or-opportunity.html


Nafta north american free trade agreement
NAFTA – North American Free Trade Agreement

NAFTA is an agreement between the United States of America, Mexico and Canada, coming into effect on January 1, 1994.

NAFTA called for immediately eliminating duties on half of all U.S. goods shipped to Mexico and gradually phasing out other tariffs over a period of about 14 years.

An expansion of the earlier Canada-U.S. Free Trade Agreement of 1989.


Nafta canada us trade agreement
NAFTA – Canada/US Trade Agreement

  • The agreement removed several trade restrictions in stages over a ten year period, and resulted in a great increase in cross-border trade.

  • The agreement greatly liberalized trade between the two countries, removing most remaining tariffs.

  • Canada desired unhindered access to the American economy. Americans, in turn, wished to compete in Canada's energy and cultural industries.

  • Canada retained the right to protect its cultural industries and such sectors as education and health care.

  • Trade between Canada and the United States began to increase rapidly.


The goals of nafta
The Goals of NAFTA

  • The Governments of Canada, the United States and Mexico resolved to strengthen the special bonds of friendship and cooperation amongst their nations.

  • To contribute to the harmonious development and expansion of world trade and provide a catalyst to broader international cooperation.

  • To create an expanded and secure market for goods and services produced in their territories.

  • To reduce distortions to trade.


The goals of nafta1
The Goals of NAFTA

  • To establish clear and mutually advantageous rules governing their trade.

  • To ensure a predictable commercial framework for business planning and investment.

  • To build on their respective rights and obligations under the G.A.T.T. and other multilateral and bilateral instruments of cooperation.

  • To enhance the competitiveness of their firms in global markets.

  • To foster creativity and innovation and promote trade in goods and services that are the subject of intellectual property rights.


The goals of nafta2
The Goals of NAFTA

  • To create new employment opportunities and improve working conditions and the living standards in their respective territories.

  • To undertake each of preceding in a manner consistent with environmental protection and conservation.

  • To preserve their flexibility to safeguard the public welfare.

  • To promote sustainable development.

  • To strengthen the development and enforcement of environmental laws and regulations.

  • To protect, enhance and enforce basic workers rights.


Nafta controversy
NAFTA Controversy

  • Transnational corporations have tended to support NAFTA in the belief that lower tariffs would increase their profits.

  • Labour unions in Canada and the United States have opposed NAFTA for fear that jobs would move out of the country due to lower labour costs in Mexico.

  • Farmers in Mexico have opposed and still oppose NAFTA because the heavy agriculture subsidies for farmers in the United States have put a great deal of downward pressure on Mexican agricultural prices, forcing many farmers out of business.

  • Opposition to NAFTA also comes from environmental, social justice, and other advocacy organizations that believe NAFTA has detrimental non-economic impacts to public health, the environment, etc.


National treatment
National Treatment

  • Refers to establishing for Canada the United States and Mexico with respect to a state or province, treatment no less favorable than the most favorable treatment accorded by such state or province to any like, directly competitive or substitutable goods.


National treatment1
National Treatment

  • This means that Canadian federal, provincial and territorial governments cannot treat goods from the United States and Mexico any differently from the way that they treat domestic goods with respect to taxation and regulations for sale, transportation, distribution or production.

  • The United States and Mexico cannot discriminate against Canadian goods.


The effects of nafta
The Effects of NAFTA

Created the world's largest free trade zone

• Brings together an estimated number of 450 million consumers producing $17 trillion worth of goods and services

  • Since the implementation of the NAFTA, Canada’s trade with the United States has risen 80%, while trade with Mexico has doubled.

  • Trilateral merchandise trade has nearly tripled since NAFTA came into force in 1994. It topped $1 trillion in 2008.


The effects of nafta1
The Effects of NAFTA

  • Canada and Mexico are the U.S.’s first and second largest export markets

  • In 2006, U.S. exports to NAFTA partners accounted for 35 percent of total U.S. exports.

  • U.S. employment rose from 112.2 million in December 1993 to 137.2 million in December 2006, an increase of 25 million jobs, or 22 percent.

  • More than 4.3 million net new jobs have been created in Canada between 1993 and 2008. One in five jobs in Canada is linked to international trade.


The effects of nafta2
The Effects of NAFTA

  • Canada and the United States currently exchange nearly $1.6 billion in goods and services each day.

  • Canadian firms have been able to expand sales into the Mexican market, in sectors that were previously highly restricted, such as automotive products, financial services, trucking, energy and fisheries.


Canadian export growth
Canadian Export Growth

Year Billions of $ (Value in 2009)

1950 $3.16 $31.9

1960 $5.39 $39.3

  • $16.82 $94.4

    1980 $64.3 $162.3

    1996 $275.82 $353.9

  • $412.18 $490.5

    2006 $458.16 $481.7

    2008 $483.6 $484.2


Wine and international trade
Wine and International Trade

Wine is one of the areas in which we had a huge trade deficit.

If trade allows a country to specialize in what it does best, should Canada be producing wine?

If trade is meant to enlarge the potential market for goods in an economy, has the Canadian wine industry been helped by international trade?


Wine and nafta
Wine and NAFTA

  • According to the Case, Chapter 8 of the earlier Free Trade Agreement with the US reduced barriers to trade for wine.

  • This is a special exemption from the National Treatment provisions.

    • There is a similar exemption for Canadian cultural activities (see week 3)


Wine and nafta1
Wine and NAFTA

  • Canada could not treat Canadian wine any differently.

  • Has this helped Canada?

    • US wine exports to Canada reached $260 million in 2008.

    • Canadians exported $12.1 million in wine to the US in 2007.


Free trade and wine
Free Trade and Wine

  • An example of how wine can benefit from free trade:

    • Chile and South Korea entered into a free trade agreement in 2004 which included wine.

      • Prior to this agreement, Chilean wine accounted for 6% of all wine imports.

      • After the agreement, this rose to 24%

    • Why is this the case?

      • Wine is hit with high tariffs, raising the prices.

      • US wine is about double the cost in South Korea than it sells for in the US due to these tariffs.

      • Chilean wine, tariff-free, ends up being significantly cheaper.


Free trade and wine1
Free Trade and Wine

  • Being on the outside of a preferential agreement can really hurt your competitive advantage.

    • In the EU, they will not even allow Canadian wine to be imported.

  • But, we have free trade with the US, yet very little of our wine ends up there.

  • US imports to Canada increased dramatically.

  • So what was the impact on our industry?


Free trade and wine2
Free Trade and Wine

  • Unlike other industries, free trade with the US actually ended up benefiting our wine industry.

  • While we don’t sell very much abroad, and our share of the domestic market remains low relative to other wine producers, free trade brought a major shift in how wine was produced.


Free trade and wine3
Free Trade and Wine

  • Quality became the focus on wine.

  • Like one of the earlier clips we saw, Ontario followed the BC model and started developing estate wineries.

  • In fact, most of the wineries found in Ontario started after free trade was instituted.

  • Why?


Free trade and wine4
Free Trade and Wine

  • Because if it was to continue, our wine industry had to mature. It had to evolve. It had to be able to produce better quality wine.

  • The Case indicates that the provinces of Ontario and BC set up a $100 million Grape and Wine Adjustment program to help finance the change.


Free trade and wine5
Free Trade and Wine

  • Growers started to reduce the yields of their grapes to increase quality.

  • The older, native grapes were replaced with the European varieties.

  • VQA was formed to focus on the quality of wines.


Free trade and wine6
Free Trade and Wine

  • So while free trade may not have opened up many markets for Canadian wine (and one of the major reasons you enter into a free trade agreement is to open new markets) it did force our wine makers to improve their product.


Future of the canadian wine industry
Future of the Canadian Wine Industry

  • While it has grown significantly, it is still in its infancy.

  • In order to get to the next level and continue to mature, Canadian wine will have to find new markets, both at home and abroad.

  • The success of Canadian Ice Wine will have to be exploited, and hopefully the desire by other nations to import this will open doors for the rest of the industry.


Other free trade agreements
Other Free Trade Agreements

Canada is currently negotiating Free Trade Agreements with:

The European Union

India

Japan

South Korea

Trans-Pacific Partnership (TPP): Pacific Rim countries including the US, Japan, Australia, Malaysia, Singapore, NZ, Thailand…


Major regional trading groups
Major Regional Trading Groups

  • European Union

  • North American Free Trade Agreement

  • The Americas: CARICOM, MERCOSUR, CAN, LAIA

  • ASEAN

  • APEC

  • The African Union


The world trade organization
The World Trade Organization

  • GATT: Predecessor to the WTO

  • Most Favored Nation

  • Dispute Settlement

  • The Rise of Bilateral Agreements


Economic integration trade deals
Economic Integration – Trade Deals

  • Regional trade agreements—integration confined to a region and involving more than two countries.

  • Geographic proximity is an important reason for economic integration.


Major types of economic integration
Major Types of Economic Integration

•Free trade area—no internal tariffs.

• Customs union—no internal tariffs plus common external tariffs.

• Common market—customs union plus factor mobility.


Arguments for protection
Arguments for Protection

  • Industries fearful of foreign competition.

  • Those intended to influence the composition of production.

  • Those intended to influence the level of employment.

  • Those intended to influence the distribution of income.



Protection of infant industries
Protection of Infant Industries

  • The infant-industry argument for protection holds that governmental prevention of import competition is necessary to help certain industries move from high-cost to low-cost production


Protection of small wineries
Protection of Small Wineries

  • When foreign competition is reduced or eliminated by import barriers, domestic industries can develop rapidly.

  • Protection frequently cannot be removed because the domestic industries never develop sufficient competitive strength.


National defense argument
National Defense Argument

  • Seeks to avoid dependence on foreign sources for supplies of essential materials or finished products that might be denied in time of war.


Counter dumping argument
Counter Dumping Argument

  • Dumping occurs when products are made available as imports at prices lower than the prices prevailing in the exporting country.


Redistribution of income argument for protectionism
Redistribution of Income Argument for Protectionism

  • Refers to a country's ability to gain income at the expense of other countries by imposing tariffs or other import barriers.

  • Invites retaliation.


Increasing employment
Increasing Employment

  • With imports reduced, demand for domestic substitutes will be stimulated expanding production at home.

  • Referred to as “Beggar-thy-Neighbor”

  • It invites retaliation by other nations.


Developing an industrial base
Developing an Industrial Base

  • Countries seek protection to promote industrialization because that type of production:

    • Brings faster growth than agriculture

    • Brings in investment funds

    • Diversifies the economy

    • Brings more income than primary products do

    • Reduces imports and promotes exports

    • Helps the nation-building process


Preserving national identity
Preserving National Identity

  • Canada Pioneers Canadian Content Provisions

  • Easier for companies to import when they produce in Canada a certain proportion of the content of goods they sell.


Preserving national identity1
Preserving National Identity

To sustain this collective identity that sets their

citizens apart from those in other nations,

countries limit foreign products and services in certain sectors.


Why support agricultural areas
Why Support Agricultural Areas?

Influenced by immigration patters.

Economics

Cultural differences

Resource differences

Historic differences

Discuss Examples.


Regional differences
Regional Differences

Market access for products. Tonoto vs. Niagara

Natural Resources – Inherently Volatile

Occupational mobility, fishing and mining

Spatial immobility “I like it here!”

Claim to capital, i.e.. Bank Loans


Government tries to regional differences three ways
Government tries to Regional Differences three ways.

Industrial Incentive Programs

Infrastructure Assistance Programs

Social adjustment and rural development programs.


Industrial incentive programs
Industrial Incentive Programs

Make viable industries attractive in slow growth regions.

Tax credits, seed money, consulting services.

Oil and Gas in Newfoundland.


Infrastructure assistance programs
Infrastructure AssistancePrograms

Assist in providing capital for sewers, water, road improvement, hospitals and universities.

Example. Toronto to Montreal high-speed rail proposal.


Social adjustment and rural development programs
Social adjustment and rural development programs.

Try to develop industries in areas where there is little or no productive employment.

Example: The soap stone carving industry in Nunavut.


Why do these programs exist
Why do these Programs exist?

Primary goal is job creation.

Sustains families

Dignity

Politics

Economy


Why do these programs exist1
Why do these programs exist?

To strengthen power of Federal authority.

Political motives.

Nation building.

Reduce equalization payments.

Criticism - These programs may support inefficient economic activities at the expense of viable economic activities. Discuss.


Types of economic incentives
Types of Economic Incentives

Loan guarantees

Tax incentives

Cash grants

Marketing and promotion.

Bailouts

Examples?


Assumptions in developing an industrial base
Assumptions in Developing an Industrial Base

  • Surplus Workers

  • Investment Inflows

  • Diversification

  • Growth in Manufactured Goods

  • Import Substitution and Export-Led Development

  • Nation Building


Import restrictions to create domestic employment
Import Restrictions to CreateDomestic Employment

  • May lead to retaliation by other countries

  • Are less likely retaliated against effectively by small economies

  • Are less likely to be met with retaliation if implemented by small economies

  • May decrease export jobs because of price increases for components

  • May decrease export jobs because of lower incomes abroad


Economic relationships with other countries
Economic Relationshipswith Other Countries

  • Trade controls are used to improve economic relations with other countries

  • Their objectives include improving the balance of:

    • payments

    • raising prices to foreign consumers

    • gaining fair access to foreign markets

    • preventing foreign monopoly prices

    • assuring that domestic consumers get low prices

    • lowering profit margins for foreign producers


Maintaining essential industries
Maintaining Essential Industries

  • In protecting essential industries, countries must:

    • Determine which ones are essential

    • Consider costs and alternatives

    • Consider political consequences


Preventing shipments to unfriendly countries
Preventing Shipments to “Unfriendly” Countries

  • Considerable governmental interference in international trade is motivated by:

    • political rather than economic concerns

    • maintaining domestic supplies of essential goods

    • preventing potential enemies from gaining goods that would help them achieve their objectives


Maintaining or extending spheres of influence
Maintaining or Extending Spheres of Influence

  • Governments give aid and credits to, and encourage imports from, countries that join a political alliance or vote a preferred way within international bodies.

  • A country’s trade restrictions may coerce governments to follow certain political actions or punish companies whose governments do not.


Instruments of trade control
Instruments of Trade Control

  • Trade controls that directly affect price and indirectly affect quantity include:

    • tariffs

    • subsidies

    • customs-valuation methods

    • special fees


Nontariff barriers direct price influences
Nontariff Barriers: Direct Price Influences

  • Subsidies

  • Aid and Loans

  • Customs Valuation

  • Other Direct Price Influences


Trade restrictions as protectionism
Trade Restrictions as Protectionism

  • Non-tariff barrier refers to any action other than a tariff that restricts International trade

  • Quotas

  • Licensing

  • Regulations


Nontariff barriers quantity controls
Nontariff Barriers: Quantity Controls

  • Trade controls that directly affect quantity and indirectly affect price include:

    • quotas

    • voluntary export restraint  (VERs)

    • “buy local” legislation

    • standards and labels

    • specific permission requirements

    • administrative delays

    • reciprocal requirements

    • restrictions on services


Dealing with governmental trade influences
Dealing With Governmental Trade Influences

  • When facing import competition, companies can:

    • Move abroad

    • Seek other market niches

    • Make domestic output competitive

    • Try to get protection


Tactics for dealing with import competition
Tactics for Dealing with Import Competition

  • Convincing Decision Makers

  • Involving the Industry and Stakeholders

  • Preparing for Changes in the Competitive Environment


How to do business with nafta corporate strategy
How to Do Business with NAFTA: Corporate Strategy

  • Predictions and Outcomes

    • Companies would look at NAFTA as one big regional market

    • U.S. companies would run Canadian and Mexican companies out of business once the markets opened up