To ask why Canada entered the 1988 free trade agreement with the United States of America is to ask a complicated question that is likely to garner a different answer from each respondent. The best that one can do when analyzing the multitude of components that led to this agreement is to eliminate any pre-conceived notions that they may hold about liberalized trade, and attempt to objectively assess the issues that this country faced in the years leading up to 1988. Free trade between Canada and the US is likely one of the most contentious issues that our country has ever faced. This becomes apparent when studying Canadian history throughout the 19th and 20th centuries. Canadian economic development has flourished, and been stunted, as a result of our overwhelming dependence on export of ‘staples’ to the US.
A lengthy analysis could be given discussing the reasons why our economy has evolved to become so dependent on one nation for its development. However, this analysis is mainly concerned with the direct issues which led Canada into the FTA on January 1st, 1989. To begin, we must discuss the fiscal uncertainty that was caused by two economic recessions, the first to occur since the Great Depression, and the subsequent measures which the governing Liberals adopted to combat the problem. Secondly, a worldwide ideological shift had begun during the 1970’s favouring the adoption of neo-liberal free market principles which championed free trade agreements. Thirdly, the emergence of global regional trading blocs, and increased US protectionism led Canadians to ponder their economic position in a changing global environment. Finally, and perhaps most importantly, the 1980’s marked the decade in which corporate power manifested i...
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Rugman, Alan M., “Why Business Supports Free Trade” in Free Trade: The Real Story. John Crispo, ed. Toronto: Gage, 1988.
Warnock, John W., Free Trade and the New Right Agenda. Vancouver: New Star, 1988.
Before the war, Canada’s most important sector in its economy was agriculture. However, this was changing drastically after and during the war as industry began to take over as being more important. Canadian production of war material, food supplies, and raw materials had been crucial during the war. After the war, it was only natural that big investments were being made in mining, production, transportation, and services industries. Canadian cities were becoming very important contributors to the economy. This was also bringing in waves of post-war immigration, the backbone of Canada’s multicultural society we know today.
... the American economy for trade rather than their own country. The shift to a national highway in Canada supported trade and the economy in giving motorists the ability to travel through Canada without having to leave like which had to be done in previous years.
Stevenson, Garth. "Canadian Federalism: The Myth of the Status Quo." Reinventing Canada: Politics of the 21st Century. Ed. M. Janine Brodie and Linda Trimble. Toronto: Prentice Hall, 2003. 204-14. Print.
The economic progress Canada made after the war lead to the growth of the country. New industries emerged from innovations of products like automobiles, radios, television, digital computers and electric typewriters (Aitken et al., 315). Canadians quickly adapted back to the “buy now, pay later” strategy rather than careful budgeting during the Great Depression (Liverant). Almost everything that Canadians did was influenced from new inventions; television was the most influential. Canadians conversations, humour, and lifestyle were influenced from television (Aitken et al., 315). Trade relations between the United States and Canada had become more efficient due to the St. Lawrence Seaway. The mass development of the St. Lawrence Seaway, in 1954, was to provide a large wate...
Spicer, Keith. 1991. Citizen’s Forum on Canada’s Future: Report to the People and Government of
Ninette Kelley and M. J. Trebicock, The Making of the Mosaic: a history of Canadian immigration policy. (Toronto: University of Toronto Press 1998).
Quinlan, Don, Doug Baldwin, Rick Mahoney, and Kevin Reed. The Canadian Challenge. N.p.: Oxford University Press, 2008.
Trading internationally, along with foreign trading policies has always been a controversial issue in America. Free trade is just as taboo if not more so. Today, the United States has made an attempt to maintain an open market of trading. Free trading greatly benefits a nation’s economy. The history of trade in The United States dates back over half a century ago. Through a substantial part of history, the United States had implemented rather extensive barriers and restrictions regarding importation, in order to better protect domestic suppliers from any serious foreign rivalry. Regardless, of Government restrictions and barriers set in place to avoid foreign competition it is healthy for our nation to have motivation and have the desire to
Many people across the globe argue that nationalism within Canada is simply not feasible. It is said that we as a people, differ so greatly with our diverse cultures, religions, and backgrounds that we cannot come together and exist together as a strong, united nation. In his book, Lament for a Nation, George Grant tells the reader that “…as Canadians we attempted a ridiculous task in trying to build a conservative nation in the age of progress, on a continent we share with the most dynamic nation on earth. The current history is against us.” (1965) Originally directed towards the Bomarc Missile Crisis, the book argues that whatever nationalism Canada had was destroyed by globalization as well as the powerful American sphere of influence. Although it is true that the book was initially written as a response to the events that took place in the late 1950s, many of the points are still valid today.
Roberts, Russell. (2006). The Choice: A Fable of Free Trade and Protectionism. New Jersey: Prentice Hall.
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Stoffman, Daniel. Who gets in: What's wrong with Canada's immigration program, and how to fix it. Toronto: Macfarlane Walter & Ross, 2002.
Canada and the United States are the largest trade partners in the world. It is the result of the geographical position of two countries and the free trade between two countries. It should be a great thing for the economies of both countries, but since the North American Free Trade Agreement was signed, American businesses almost took over the Canadian economy. When the American companies started to make more business in Canada, it brought more jobs and money to the country in the short-term. But as a long-term effect Canadians became even more depended on the U.S. as the American companies started dominating Canadian companies in Canada. Also, today Canadian manufacturers have little protection from the government when ch...
Another economist Douglas Irwin wrote a book titled “Against the Tide”. The book is an Intellectual History of Free Trade; it is an interesting, educational account of how free trade appeared and of how the concept of free trade has coped with two centuries of attacks and criticism.