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Article Abstract:

AUS-Canadian free-trade agreement must address key Canadian concerns: application of local, state, and federal laws to Canadian goods or Canadians in the US, and non-negotiable items in policy, trade, investment, laws, and regulations. Definition is required of actions and subsidies that are countervailable and those that are not, all of which must be in accord with the General Agreement on Tariffs and Trade. Dispute-settlement mechanisms are needed. Should negotiations fail, Canada can assume a defensive, vengeful policy, or an outward and forward-looking one of antiprotectionist lobbying and a more international marketing philosophy, especially on the Pacific Rim. Canada also must attend to achieving regionally balanced growth and employment, as well as breaking out of the agricultural surpluses cycle.

Publisher: Economic Council of Canada
Publication Name: Au Courant
Subject: Business, international
ISSN: 0226-224X
Year: 1987

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External pressures on domestic policy

Article Abstract:

Canadian policies and practices may adversely affect US-Canadian trade relations. The Canadian government subsidizes certain industries and regions to help equalize conditions for Canadians. This might be considered a countervailable subsidy under the General Agreement on Tariffs and Trade. Import duties could be imposed to offset the effect of the unfair competition of industries or specific firms that receive government help. The US fishing industry is opposed to the special unemployment compensation Canadian fishermen receive, since US fishermen might demand the same benefits. Similar US protests are heard about generous Canadian medical programs. Canada will not bend on these. Canadian book, record, and film industries insist on retaining cultural autonomy.

Publisher: Economic Council of Canada
Publication Name: Au Courant
Subject: Business, international
ISSN: 0226-224X
Year: 1987
Economic aspects

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The impact of a trade accord

Article Abstract:

Free-trade between the US and Canada would create 350,000 new Canadian jobs by 1995, causing minor job losses only in already declining industries. The improvement in employment and productivity would be spread fairly evenly across all regions. Canada's introduction to the service industry surge and away from labor-intensive industries would be enhanced. The impact of free trade will be to improve real wages, increase output and employment, stimulate business investment, encourage productivity, lower prices, reduce government budget deficits, and strengthen the Canadian dollar versus the US dollar. Industries highly subsidized and-or protected by the Canadian government will suffer, at least initially.

Publisher: Economic Council of Canada
Publication Name: Au Courant
Subject: Business, international
ISSN: 0226-224X
Year: 1987

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Subjects list: United States, Canada, Forecasts and trends, United States foreign relations, Free trade, Canadian foreign relations, Canada. Economic Council of Canada, International aspects
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