A Turning Point in U.S.-Canadian Relations

U.S.-Canadian relations are at a turning point. Negotiations aimed at reaching a comprehensive trade accord between the two countries have entered a final phase. To be considered by Congress, a draft treaty must be ready by October. A successfully concluded pact will be an important step forward in consolidating cooperation between the two North American neighbors; moreover, in a world rampant with protectionist tendencies it will provide an effective example of liberalizing international trade. Conversely, failure to reach a mutually satisfactory agreement will not only be a distinct setback in bilateral relations between Ottawa and Washington, but will also encourage nationalist and protectionist trends. Whatever the outcome of the trade talks with the United States, it will have profound consequences for Canada, reaching to the very heart of the country’s politics.

For the United States, close economic ties with its largest trading partner are important; for Canada, with three-quarters of its trade going to the United States, they are essential. But the present negotiations also have a symbolic significance. The success or failure of the talks will affect the overall climate of relations between the two countries on such issues as acid rain, Arctic sovereignty and cooperation in North American air defense. Indeed, the outcome of the trade negotiations may influence the countries’ readiness to cooperate on various global issues, both within NATO and in the broader realm of East-West relations. Last but not least, since the trade issue is likely to play a major role in the Canadian elections that are expected in 1988 or early 1989, the outcome of the negotiations may determine the pattern of Canadian-American relations for a number of years to come.

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