POLI 243 Chapter Notes - Chapter 22: Office Of The United States Trade Representative, Foreign Investment Review Agency, General Agreement On Tariffs And Trade

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Published on 18 Apr 2013
School
McGill University
Department
Political Science
Course
POLI 243
Professor
Chapter 22: Canada and the Free Trade Agreement with the US
Background
Canada & US explored freer trade on several occasions after 1911
Bilateral agreements 1935, 1938
o Need to stimulate production and employment
Canada takes the initiative and asks US for trade liberation in 1985
Fears of the new Protectionism
GATT provided benefits to countries relying on trade
Early 1980s GATT in trouble?
o Principals and practices under attack
o Developing countries joining and developed countries having economic
difficulties
o GATT rules prevented tariffs from rising btu caused an increase of non-
tariff barriers
o Uruguay Round dragging on, trade in agricultural goods and in services
were issues
o Bilateral trade agreement with US in response to possible decline of
GATT and/or NTBs
Canada’s attitude towards US
Views of Mitchell Sharp dominated perspective on trade with US after 1972
o Vulnerable to threats
o See Nixon Shocks
o Stressed multilateral trade strategies, lessen economic dependence on US
Foreign Investment Review Agency (FIRA) monitored and regulated foreign
investments entering Canada
1980 National Energy Program (NEP) introduced to promote Canadian ownership
of energy sector
1982-3 Trudeau admin reemphasized sector-based approach to trade policy
tariff reductions by Canada in 1980s had lead to increased trade levels and an
increase in holdings by foreign investors
to this day Canada supplies raw materials and energy to the US and receives large
amounts of US investments. Canada is also one of the top foreign investors in the
US.
However, US dominates.
Canada initiates talks
Goals: securing access to US market, open previously blocked parts of US
market to Canadian exporters, establish special rules for some sectors
(agriculture, wine/spirits, energy, autos)
First discussion in 1984 aimed at replicating the auto pact in other sectors
No agreement as the symmetry was hard to see. Decided that any deal would
need to be much broader.
Public support already existed.
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Document Summary

Chapter 22: canada and the free trade agreement with the us. Canada & us explored freer trade on several occasions after 1911. Bilateral agreements 1935, 1938: need to stimulate production and employment. Canada takes the initiative and asks us for trade liberation in 1985. Gatt provided benefits to countries relying on trade. Views of mitchell sharp dominated perspective on trade with us after 1972: vulnerable to threats, see nixon shocks, stressed multilateral trade strategies, lessen economic dependence on us. Foreign investment review agency (fira) monitored and regulated foreign investments entering canada. 1980 national energy program (nep) introduced to promote canadian ownership of energy sector. Canada is also one of the top foreign investors in the. Goals: securing access to us market, open previously blocked parts of us market to canadian exporters, establish special rules for some sectors (agriculture, wine/spirits, energy, autos) First discussion in 1984 aimed at replicating the auto pact in other sectors.

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