Canadian workers follow the raw materials to America "The land of opportunity" to get more money. Everyone leaves to America making our population not increase because if they stay here, the workers may not earn good money, so they cannot spend it, so goods do not get produced. "The result: a downward economic spiral"(Finn Pg.10).
Another reason the FTA is a disadvantage is increased unemployment. Many American companies that have branch plants operating in Canada will become redundant and be shut down. These branch plants were established in Canada to provide shelter behind the tariff wall. Tariffs were not added to selling price of their products because they were behind the tariff wall. Under the FTA, there are no tariffs, so the branch becomes unnecessary, and the customers can be supplied equally well if not better and cheaply from one plant in the U.S. The closing of these branch plants results in many Canadian jobs disappearing (Conklin Pg.28). Also, many businesses that are owned completely by American businesses would probably move their businesses from Canada to America, where there is a bigger market and more opportunity for growth, and there are no taxes to sell products to Canada from the U.S under the FTA. The moving and shutting down of these factories and plants creates more unemployment and less job opportunities (Bowker Pg.32). Many Canadians considering starting a business in Canada may be lured to America to start their business, because with the removal of tariffs, these companies can supply Canadian customers just as easily from America while being nearer the larger American markets with the advantage of lower operating costs. This idea of starting businesses in the U.S instead of Canada, takes away jobs from Canadian workers before even giving them a chance.
Another reason for the FTA to be a disadvantage is Canada as a nation losing its sovereignty and independence.