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Canada Acts on Free Trade

Published online by Cambridge University Press:  02 January 2018

Sidney Weintraub*
Affiliation:
Lyndon B. Johnson School of Public Affairs, the University of Texas at Austin

Extract

Prime Minister Brian Mulroney requested the opening of trade talks with the United States on September 26,1985. He did not use the words “free trade,” but that was the gist of the request. He explicitly rejected a common market or a customs union and implicitly dismissed the sectoral free-trade approach. The US administration responded positively and requested permission from the Congress to open negotiations. Negotiating teams have been appointed and discussions are taking place. All the actors noted that the negotiations will be difficult and may last several years. After more than a decade of avoiding the issue, Canada has acted. The context is complex because of growing US protectionism, including concern over certain imports from Canada, especially lumber. Fear of this protectionism was one reason for the Canadian decision. Another was concern about the future of Canada's economy. The Canadian economy has performed poorly for much of the past ten years.

Type
Research Article
Copyright
Copyright © University of Miami 1986

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