C.U.S.F.T.A. (1989)
CUSFTA, short for Canada-United States Free Trade Agreement, is a trade agreement that was made created back in January 1st, 1989. It first started with negotiations in October 4th, 1987 and then was signed by both leaders the next year on January 2nd, 1988. The purpose of this trade agreement was to, of course, eliminate barriers (known as market imperfections) between Canada & the United States. This trade agreement would also enable them to also engage in fair competition since now there are regulations and agreements made between the two countries that are agreed upon and expected. Many trade agreements were made in the auto industry—a popular sector for agreements—which included more easier vehicle trades between the two countries, known as the Auto Pact, more formally known as the 1960s Automotive Products Trade Agreement. This agreement was very beneficial because the agreement removed most remaining tariffs that were in place between the two countries. The trade barriers such as the tariffs on cross-border goods were already very low being 1% on average. So removing more than what little there already was a good benefit for both countries. Although Canada wanted to have uninterrupted access to the American economy and America wanted a more easier and free access to Canada’s energy and cultural industries. Both of these wishes were not granted to each other. The agreement started to prove to be unwise for each other. John Turner, leader of the Liberal Party of Canada, really opposed this deal and expressed his distaste towards it openly. In the end, the trade agreement was taken over by another trade deal, known as NAFTA.