Canadian-American Trade Relations: Problems and Prospects.
ARMY WAR COLL CARLISLE BARRACKS PA
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There are two major economic problems between the U.S. and Canada. These are Canadas actions to overcome Americas huge direct investment in Canada and Canadas industrial strategy to reduce export of raw materials to the U.S. and to increase high technology exports. Data was gathered using a literature search and personal interviews with U.S. and Canadian trade consuls and industrialists. The sequence of recent Canadian laws and regulatory actions are examined and reveal that Canada may be on a collision course with the U.S. This could result in a reduced economic growth for both countries. A better approach, which the U.S. should encourage, is to reduce artificial tariff and legal barriers on a cooperative basis. This would enable the natural economic laws of comparative advantage, market competition and scale to achieve improved efficiency and higher living standards for the people of both countries. It is hoped that the strains of economic nationalism can be overcome by enlightened governmental actions and the personal ties and mutual concerns which are stronger than any other two countries in the world. Author
- Economics and Cost Analysis