The Canadian economy is determined largely by the economy of the United States, under the North American Free Trade Agreement (NAFTA) and the Free Trade Agreement (FTA). The North American Free Trade Agreement is an agreement that entered into force on January 1, 1995, and involves Mexico, Canada and the United States of America. This agreement would produce between 1 and 3 billion dollars in gains in each country. NAFTA guarantees that a certain amount of goods produced and traded between the three countries must have a minimum percentage of parts produced in North America. The free trade agreement is between the United States and Canada. The free trade agreement came into force in 1989, even though three-quarters of trade between Canada and the United States was already free. This deal with Canada is huge because it establishes a free trade zone between the United States and Canada, which is the largest free trade zone in the world. The free trade agreement is huge for Canada, as 20 percent of Canada's GDP comes from exports to the United States. This agreement eliminated “all trade restrictions such as tariffs, quotas and non-tariff barriers”. The Canadian economy has access to the American economy, which is ten times larger. While the American economy will benefit from Canadian products at lower prices. These two agreements show the extent to which the Canadian economy depends on the American economy and allow Canadian producers to export and import American products easily and at an affordable and profitable price. . In this article I will show you how the FTA and NAFTA help the Canadian economy export and import into the US economy and I will show you how much the Canadian economy needs the US economy to do business. Why are the FTA and NAFTA important to Canada? Considering that the United States is the most important country with which Canada trades, it seems logical that the Canadian economy would benefit from the free trade granted to it by the FTA and NAFTA. The FTA eliminated many things, including tariffs. Under the FTA, one group of tariffs was eliminated on January 2, 1989, another group in 1994, and all other tariffs were eliminated in 1999. By eliminating tariffs, goods that were not previously traded between Canada and the United States are now middle of paper......American consumers to sell their products to and Canadian industries depend on the goods they import from the United States. Take for example the Canadian automotive sector without strong American demand. for their products, many of these auto industries would not be as profitable as they are now. The Canadian automotive sector sells 87 percent of its production to the United States, which is the highest percentage in the world. With the invasion of Canada by large American corporations, it seems that most of the chains in Canada are owned by Americans. Everything in Canada seems to be interconnected with the United States and, due to the high percentage of trade between these two countries, when the Canadian economy booms it is because the American economy is also booming. When you compare the TSE and the Dow Jones, the same thing generally happens: when the Dow Jones rises, the TSE rises as well. As you can see, the Canadian economy needs the American economy, and the two have become interconnected. The Canadian economy needs the large population and high incomes that the United States has to offer. While the American economy needs the sector.