Class Notes (839,315)
Canada (511,260)
Economics (1,617)
ECON 2K03 (28)

Topic 14.docx

4 Pages

Course Code
Jack Leach

This preview shows page 1. Sign up to view the full 4 pages of the document.
Topic 14 • Royal Commission on the Economic Union and the Development Prospects for Canada (1982) • declared Canada should seek a free trade deal with the Americans • given how dependent Canada was on US market, it did not make sense to sour relations through economic nationalism - Our reliance on trade is detrimental - Americans own energy, natural resources and manufacturing sector - Buy up assets of assets of Americans in order to get rid of foreign investment - Period of tremendous debate in Canada - Pushing for Canada to loosen its ties with America, one that is less reliant on importing and exporting from US and finding another route - 1972, foreign investment review agency to monitor firms to check interests - Petro Canada  increasing Canadian ownership - Canadianize the Canadian economy - This all comes when Brian Mulroney was elected (conservatives) - 75% of what we exported went to US The Road to Free Trade Agreement • 1984 election of Brian Mulroney and the Conservatives • 75% of Canadian exports go to the US by the early 1980s • over 40% of exports were manufactured goods • led to renewed interest in securing access to US markets - We became major actors in manufacturing goods - Mulroney said that 75% of Canadian exports would be a huge market to lose. Making American sour would be horrible – let’s make them our best friends - Throughout our history, we’ve been trying to cozy up to the US - The US does not need us, they can carry on without us • initiative launched at the Quebec summit in March of 1985 • Canada more interested in a new arrangement than the US THE DEAL • tariffs to be virtually eliminated over a ten year period • a dispute settlement mechanism is created • US gets secure access to Canadian resources - Canada was much more interested in the US than the US was in us - US exports 4% to us - Tariffs were supposed to be eliminated on a 10 year period. - There need for some kind of dispute settlement - Argument was that Canada was subsidizing exports - They had to them impose a soft wood import tax The Free Trade Election, 1988 • two views of Canadian nationalism a) State and protective tariffs hold the country together b) Canadian entrepreneurs ready to play on the world stage • Conservatives win election • FTA implemented January 1, 1989 - Our goods would flow on a north south basis - Canada was ready to play on international stage - We moved being an net importer to ne
More Less
Unlock Document

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.