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Quebec has undertaken a major policy change in recent years to meet the challenges posed by the emerging structure of a continental economy. Quebecers are ready to meet these challenges and regard the future with optimism. This book explores some of these issues looking from the historical, political, social, and economic dimensions posed by transnationalism and greater interdependence.
Acknowledgements Introduction Duncan Cameron Section 1: An Overview 1. Constitutionalizing the Canadian-American Relationship Stephen Clarkson 2. Continental Corporate Economics Bruce
This study examines from an American perspective the impact of the free trade agreement (FTA) on the evolution of the Canada-United States economic relationship. It puts into historical context the special trading relationship between Canada and the United States which prevailed over the early postwar period. It examines how FTA rules and dispute settlement procedures create an effective basis for managing bilateral economic relationships in the context of more decentralized policy processes. It also explores the potential impact on the bilateral trading regime of the changing nature of international competition, the adjustments taking place in the structure of the Canadian and American economies, and the challenges posed by continuing technological change.
There are few issues as politically explosive as the liberalization of trade, as recent controversies in the United States, Canada, and Mexico have shown. While loosening trade restrictions may make sense for a nation's economy as a whole, it typically alienates powerful vested interests. Those interests can exact severe political costs for the government that enacts change. So why accept the risk?Michael Lusztig contructs a model to determine why and under what conditions governments will take the free trade gamble. Lusztig uses his model to explain shifts to free trade in four cases: Britain's repeal of the Corn Laws; the United States' enactment of the Reciprocal Trade Agreements Act (1934); Canada's decision to initiate continental free trade with the United States in 1985; and Mexico's decision to pursue the North American Free Trade Agreement (NAFTA) in 1990.
This monograph considers briefly developments which have contributed to the confidence the three Prairie Provinces have in free trade. It then examines the expected effects of both free trade in general and the Canada-U.S. Free Trade Agreement reached on October 4, 1987, in particular, on individual industries important to the Prairies. The study also considers the sectoral and regional implications of various economic models concerning trade liberalization, and the macroeconomic effects of free trade and their consequences for the Prairie region.