Through time, trade between people and nations have become more important as economic specialization enables greater productivit

Through various organizations and treaties government's are seeing their economic decision-making power decrease, at the profit of corporations. This loss of decision-making power is being seen on different scales in different parts of the world. For example economic integration of Countries in the European-Union has lead many nations to forfeit the domestic control of their economy. The more widespread impacts of clauses in the MAI treaty would have caused a devastating blow to the sovereignty of participating nations. Also the advent of international organizations such as the IMF has caused countries to give up part of their sovereignty.

Thirdly the MAI would restrict government's power on environmental policies. The foremost example of this for Canadians is the clause that would enable corporations to exploit any saleable natural resource (Water, lumber, fisheries) with no obligation to sustain them or use them in the interest of the country they are doing business in. This means that the government would have no power to regulate corporation from clear cutting forests or exporting large amounts of Canadian water. Under the MAI agreement corporations would have the power to sue governments for damages over laws that they consider unfair trading practices such as laws on emissions or pollution. This case would be decided behind closed doors and would not be decided on Canadian laws.

The implications of trade agreements such as the MAI treaty will cause the loss of sovereignty of Nation-States causing the decline in decision-making power of democratically elected governments. This problem has been examined through institutionalism and liberal theory and has been shown to be a realistic problem for future generations of young men and woman that will live the earth. The big question to ask with all this is: will the race be to the top or to the bottom?

In the MAI treaty there are clauses that would cause irreparable loss in the sovereignty of not only national level governments but of local ones like provincial and municipal levels of governments. Good examples of this are the clauses that affect subsidies. When dealing with international trade and very low or no tariffs, equal competition among industries in different has to be the norm. For example if a business in Canada is heavily subsidies by the government then this business would have an advantage over a same American company competing in a barrier less trade pact. This is why clauses in trade agreements try to limit government subsidies. Under the MAI, though, while trying to eliminate subsidies altogether, the governmental subsidies that affect the Canadian universal health care sys

Some common words found in the essay are:
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Approximate Word count = 1810
Approximate Pages = 7 (250 words per page double spaced)