Canada and the United States have more than just a border in common. According to past economic relations between the two countries, dating before the Second World War, Canada and the United States have always been good economic partners. With time, many changes have occurred and today, with NAFTA, economic integration between the two countries has not only been formalized, but has solidified their economic relationship . When NAFTA was proposed by the Conservative Government, the Most Honourable Brian Mulroney, had at the time promised, that by signing NAFTA, economic prosperity would soon follow.

To analyze the impact of NAFTA on Canada's youth, we have to ask ourselves if free trade has brought fundamental changes to our country's economy. Then, we must wonder as to how free trade has effected our everyday lives. Finally, is free trade a good thing for youth and their prospects for future employment?

Well before the ratification of NAFTA, Canada and the United States shared a common economic environment. For example: fierce international competition, a short life span for consumer products, emphasis on quality and innovation, a volatile price market and the expansion of high technologies. Also, the two countries share a similar economic structure. For example: Canada and the United States had a comparable labor force make-up and also the service sector in both countries has expanded over the years. However, NAFTA has created more opportunity for economic exchanges between the two countries.

Since NAFTA, Americans have aggressively pursued a strong position within Canadian markets. Unlike the United States, Canada's manufacturing sector was lacking in technological innovation, making it difficult for Canada to compete. In other words, Americans could produce more with less. Due to this fierce competition with the Americans, Canada, already behind lagging, had to modernize its manufacturing sector and encountered many losses during the transition. On the other hand, Canada's high technology sector has benefited from NAFTA. However, Canada has a commercial deficit toward the Americans. In numbers, this can be translated to one billion dollars-US!

The consequences and impact of NAFTA on youth are palpable. First of all, the manufacturing sector has always been an important source of employment for many youths. However, because our manufacturing sector has encountered many difficulties during the transition period with NAFTA, this sector became less and less open to youths seeking work. Secondly, even though the high technology sector has benefited from free trade, it does not mean that a larger labor force is needed because it is a sector that is capital and not labour intensive. Consequently, we can not count on this particular sector to counteract the negative consequences that NAFTA has had on the manufacturing sector. Overall, few youths have benefited from free trade.

By Vincent Boudreau.

In collaboration with Jason Binstock and Liliane Lê.