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Why did Canada seek a reciprocity agreement with The USA?

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Final answer:

Canada sought a reciprocity agreement with the USA to secure stable access to US markets, reduce trade barriers, and strengthen its economic health. This contributed to the creation of NAFTA, which opened up trade among Canada, the USA, and Mexico.

Step-by-step explanation:

Canada sought a reciprocity agreement with the USA as a strategic economic move to ensure more secure and stable access to US markets, which was a significant economic impetus. The establishment of the North American Free Trade Agreement (NAFTA) in 1994 between Canada, the United States, and Mexico aimed at reducing trade barriers and allowing goods to flow more freely among the three countries. This agreement was particularly important for Canada as it eliminated many tariffs and opened previously protected sectors such as agriculture, energy, and automotive trade.

One of the core reasons behind these agreements was to increase the countries' economic opportunities and competitiveness against other global markets, such as the European Union and Pacific Rim nations. By decreasing trade barriers and creating stable trading rules, Canada was able to strengthen its economic health and create a more integrated North American economy.

User Zforgo
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