International Trade and Finance: A North American Perspective

By Khosrow Fatemi | Go to book overview
Save to active project




In recent years Canadian dependence on the U.S. market has grown from 60 percent in 1980 to 80 percent at the present time of its total exports. Canada toted up a trade surplus of almost $13.7 billion in 1985 and $11.1 billion in 1986 with its neighbor to the south. Canada owes much of the success to two trade agreements. The 1965 auto pact with the United States assured Canada of duty-free unlimited access to the U.S. market for new cars and original parts.

The second arrangement is in defense, and provides unlimited access by Canadian firms to sell military hardware and supplies to the U.S. Department of Defense. By 1987, with full implementation of Tokyo Round cuts, 80 percent of Canadian exports to U.S. and two-thirds of U.S. exports to Canada were duty-free. But benefits are in danger. The problem is that there are deep-rooted vested interest groups that feel threatened by the free movement of goods with the United States. These pockets of disagreement with free trade belong to those segments of Canadian society that are most heavily subsidized and protected by the federal and provincial governments in Canada. By the same token, because they have most to lose, they are also the most ardent defenders of the status quo in Canada.

As Table 20.1 indicates, Canada is increasingly dependent on the U.S. market for an array of goods. While in 1970 Canada depended on the U.S. economy for about two-thirds of its exports, that dependency increased to 75 percent in 1986. Canada and the United States are each other's largest trade partners. The value of trade between the two nations reached $123 billion during 1986 and is expected to top that figure in years to come. The protectionist movement in the U.S. Congress of the late 1980s makes it an


Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this page

Cited page

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
International Trade and Finance: A North American Perspective
Table of contents

Table of contents



Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 304

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?