Chapter 10 : Canada’s External Environment: The united states and the world
-The United states is a major market for Quebec’s electricity and Alberta’s petroleum.
-Canada is linked to the rest of the world by all sorts of political, economic, defensive,
cultural, demographic and individual ties.- which constitute the global environment of the
Canadian political system
-These links cause Canada to have a hard time pursuing their own policy preferences
-Even though we gained legal powers to make decisions for ourselves, we are faced with
a multitude of external influences.
-Most influence is united states- (the world’s only hyperpower)
The Global Setting: Forgein Governments
- Foreign governments make decision every day in both foreign and domestic
policy that can have some effect on Canada. Sometimes this impact is deliberate,
but often it is unintentional.
- European agricultural subsidies are also a source of great distress to Canadian
- Canada has joined a multitude of international organizations with the aim of
taking advantage of opportunities to influence other countries policies, to expand
external trade, and to promote joint objectives with other states.
- This membership often entails obligations and responsibilities that influence
Canadian domestic or foreign policies.
- The UN has always been central to Canadian foreign policy
- The UN has also criticized several domestic Canadian policies: Quebec’s
language legislation, and federal and provincial laws on labour, aboriginals and
- UN has coercive resources to apply to governments that break their commitments
to its covenants, the organization wield considerable prestige and its moral
suasion is sometimes enough to change their domestic policies
Leading International Organizations to Which Canada Belongs
- the UN
- The World Trade Organization
- North Atlantic Treaty Association
- North American Aerospace Defense Command
- The International Monetary Fun and the World Bank
- The Organization from Economic Cooperation and Development
- The Commonwealth
- La Francophonie
- The Organization of American States
- The G8
- Asia- Pacific Economic Cooperation Council World Trade Organization: can require its members to change their trading practices.
International Monetary Fund: puts pressure on member countries with respect to the size
of national defects, advising he Canadian government in 1991 not to raise public
servants’ salaries and in 199, to cut income taxes and the debt.
- International organizations to which Canada does not belong can also make
decisions that have a major influence on domestic policies.
- Canada often signs international agreements with one or more foreign
- Such agreements usually present both opportunities and obligation and provide a
certain amount of constraint on subsequent domestic policy making.
- Agreements that stand out that Canada signed are: Canada-US Free Trade
Agreement and The North American Free Trade Agreement
The Canada- U.S Free Trade Agreement
- most significant
- removed almost all barriers to the cross-border flow of goods and services
between the two countries.
- Each could send its products to the other without tariffs, quotas, or other
- Each continued to apply its own tariffs to imports from other countries
- Dispute-settlement mechanism:
- For any subsequent conflicts in trade between the two countries, a complex
dispute-settlement mechanism involving national panels and binding arbitration
was set up
- Neither government could regulate, restrict or tax such goods and services across
- Free trade deals are primarily about reducing the role of government and turning
more power over corporations in the marketplace
North American Free Trade Agreement
- extended the FTA to Mexico , most provisions in the two agreements are identical
- entered the agreement to prevent the other partners from endangering its position
- opponents feared that companies would move from Canada to mexico because of
the low wages and l