International Business
Unit 1: Day 7
Barriers to
International Trade
• Continued from previous lesson
• Last class, we discussed three barriers to
international trade.
• Tariffs, Investment Regulations, Currency
Exchange
#4 Environmental
Restrictions
• Canada is a country that protects its natural
resources with a number of regulations
• Foreign insects and diseases could destroy
entire industries and hurt the Canadian
economy
• Examples of this is the mad-cow disease
#4 Environmental
Restrictions
• Canadian laws are made to ensure that all
food, fish, plants, animals must comply with
Canadian standards
• CFIA (Canadian Food Inspection Agency)
• Canada also participates in the CITES which is
the convention on international trade and
flora which prohibits Canada from trading
over 30,000 animals and plants
#4 Environmental
Restrictions
#5 Foreign Relations &
Trade
Sanctions
• What is the best way to positively help
countries with human rights abuse, war,
revolution, terrorism, human smuggling
etc?
• Canada tries to help in these situations in a
non-violent manner
• They use trade sanctions which means
refusing the act of trade with another
country
#5 Foreign Relations &
Trade Sanctions
• This can include placing limitations on travel to the
country, seizing or freezing any assets they have in
Canada, and/or stopping trade with that nation
• Often when this occurs it is done with other countries
to make a larger impact on that country
• The laws which allow our government to do such
actions are Special Economic Measures Act (SEMA),
• Export and Import Permits Act (United Nations)
#5 Foreign Relations &
Trade Sanctions
• The job responsible for these actions is Canada’s
foreign affairs and International Trade’ minister
• So SEMA allows Canada to act as an individual
country in imposing trade embargoes on a country
• The United Nations Act is a set of laws that involve
countries all over the world
• If the U.N votes to impose trade restrictions on a
country, Canada may be forced to obey
#5 Foreign Relations &
Trade Sanctions
• Embargoes are put into place when a
country or government is in breach of
international peace and security
• The export and imports permits acts is a list
of goods that cannot be brought into the
country or sold to another country
#5 Foreign Relations &
Trade Sanctions
• There are three laws/acts that are in control of this
• 1) Area control list (ACL)
• 2) Export control list (ECL)
• 3) Import control list (ICL)
• ACL is all restricted countries
#5 Foreign Relations &
Trade Sanctions
• ECL is all exports that cannot leave the country
• ICL all imports that cannot come into the country
#6 Safety Regulations
• Canada has made many laws to make sure that the
people are safe from national and international
products
• These laws are called acts
• Food and drug act, meat inspection act, fish
inspection act are examples