There are many benefits to free trade. Free trade expands the market economy of a country by allowing foreign competition. This competition forces firms to specialize in areas in which they are comparatively better than the foreign firms. Specialization allows each country to produce more goods than they would be able to under a closed trading system. Increased competition also drives down the prices of both consumer goods, as well as good that are used as inputs in the production process. Countries today are also faced with a level of globalization never before seen in history, which forces them to expand their trade linkages in order to stay competitive in the global economy. Asia has become one of the more important trading regions in recent decades, first with the rise of the Japanese economy and now with other countries, such as China and India, becoming important players in the global economy. Asia is also an important region for value-added services. Value-added service involve adding value to a product in various stages of the production process. With the rise of intra-industry trade, such services are becoming increasingly important for countries, such as Canada, to remain competitive. One way that Canada can increase its trade linkages with the Asia-Pacific region is by negotiating bilateral free trade agreements with some of the rising economic powers in the region, such as South Korea.

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