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Canada's Trade Policy towards Developing Countries

Introduction

Canada is one of the richest and largest countries of the world, however, its population is small therefore it need to look beyond its own borders for vast number of its economic transactions. Canada is very successful as a trading nation and that is one of the major reasons of its prosperity. In Canada approximately one fourth of its jobs are related with goods and services exported to global market. It is an export oriented economy and that's why it maintains a primary interest in the continuation of expansion and modernization of a transparent, multilateral, and rule based trading system (www.cid.harvard.edu).

Canada is a key advocate of free trade globally and trade plays a major role in engaging Canada with developing countries. As the emerging economies successfully use export led growth strategies, developing countries become interested and looks for lucrative markets for trade like Canada, as an essential component for their development (www.cidpnsi.ca). Thus, Canada encourages trade and investment flows that contribute to the sustainable development in the country and abroad.

Discussion

The global economic development today is highly based on the liberalization of trade and investment, which is making the world's economies increasingly interdependent on each other. Canada trades about 74 percent of its GDP in both imports and exports, which indicates that it is an open economy or open trade system that enhances international competitiveness of its businesses fairly. Canada is one of the major country that promote trade liberalization by being signatory to various regional, global, and bilateral agreements (www.ic.gc.ca).

Doha Development Agenda that deals with benefiting all the countries is being maintained by Canada. Multilateral trading system can reduce poverty, therefore, Canada takes active participation in it. Moreover, developing countries comprise of 80% of the WTO's membership, which ...