Canada and Free-Trade Agreement w/ US
Uruguay Trade Negotiations dragging on -> doubts about the availability/
stability of GATT.
As insurance Canada need access to sum foreign market in the future (FTA w/
Signs that US was to practice more protectionism (NTB’s were already being
deployed; tariffs were an option). Canada super interested in deciding on how
were issues to be settled in international trade.
Criticism of system-level: fears about breakdown of GATT existed for a long time.
Why now does Canada decide to act? Also, it was apparent from Tokyo round that
NTB’s were to appear occasionally in trade. System-level arguments are too vague.
Domestic level: Electoral strategy of the Tories
Different provincial interests: traditional support in the West + support of QC. Free trade
became the pivotal issue of the federal election. Ontario – main opposition.
Liberals – the opposition – were themselves divided on the issue, thus mounting a weaker
Tories were seen as successful economic leaders, as their previous election promises
were indeed carried out. Could claim success with their previous policies.
Bureaucratic Politics: TNO
DRIE – department of regional industrial expansion was a source of opposition to
free-trade. Was to assist industrial sectors in trouble -> foreign competition was the
source of trouble.
Much of bureaucratic opposition was cut by setting up TNO (trade negotiator’s
office). Giving it resources, able leadership (Hart, Reisman). Office specifically
dealing w/ US trade issues. While the USTR (US trade representative) was both
understaffed and had other issues to deal with (Canada was rather minor). TNO also