Marketing Impact of Trade Bloc Formation on Third Country Firms:

The United States-Canada Free Trade Agreement (FTA) came into effect on 1 January 1989. Its main provision is the elimination of all tariffs on trade between the two countries by 1 January 1998. On balance, it is expected to be beneficial to the exporting firms of both the U.S. and Canada. However, it is also likely to impact on other third country firms that rely heavily on the U.S.-Canada market. This study attempts to examine the marketing impact of the FTA on Singapore firms and suggests some strategies to harness any opportunities and overcome any threats consequent to the agreement. Further, implications on other third country firms that are interested in the U.S. and Canada markets are also discuessed.