A Turning Point in U.S.-Canadian Relations
A successfully concluded free trade pact will consolidate co-operation between the USA and Canada, and be of economic benefit to both. It will provide an effective example of liberalizing trade in a world riddled with protectionist tendencies. Failure on the contrary will inflame nationalist sentiments on both sides. The outcome of the trade negotiations may also influence co-operation in other fields such as acid rain, Arctic sovereignty and North American air defence.
Adam Bromke is a professor of political science at McMaster University, Hamilton, Ontario, and a columnist on international affairs for The Toronto Star. Kim Richard Nossal is an associate professor of political science at McMaster and author of The Politics of Canadian Foreign Policy.
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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Relations between Canada and the United States have become more strained than at any time in recent memory. There have been many earlier periods of tension, but the policy orientations of the two capitals in late 1981 appear to be far more divergent than in the past. The two governments seem to be on a collision course, in a context that political leaders cannot fully control.
Not for the first time, agricultural trade has become a live and contentious issue in Atlantic relations. Questions of access and protection have been subjects of constant concern to American farmers and traders since the establishment of Europe's Common Agricultural Policy 25 years ago. Now, though, under the pressures of surplus stocks of grain and falling farm incomes, there is a new area of contention--competitive subsidies designed to win or ensure shares in an erratic world market. Months of negotiation have failed to resolve the issue and neither the European Community nor the United States has shown any sign of being ready to sacrifice what both define as legitimate economic interests.
The United States is now engaged in a divisive debate over international trade. On one side are disciples of the principle of free trade--the touchstone of American trade policy in the postwar era. Free traders argue that the interests of the United States, and of the world, continue to lie in reducing barriers, subsidies and other government interventions which distort the natural pattern of specialization and trade among countries. On the other side are those calling for policies to protect American industry from foreign competition. Protectionists argue that imports are causing massive unemployment and eroding the nation's industrial base.

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