The Canada-U.S Economic Relationship Peace Arch Crossing State Department Photo “America’s Unhappy Borders” The Economist, 8/27/05 Study Canada Summer Institute, 2010 Dr. Paul A. Storer
Outline of Talk • Canada-U.S. Interdpendence: - National and Regional Trade • Lessons from Canada: - Environment - Health Care - Banking System - Inequality and Social Programs - Costs and Benefits of Trade
Canada’s Rank for States’ Exports of Goods Source: http://www.canadainternational.gc.ca/washington/
Canada-U.S. Integration • 36 states have Canada as their largest export market. • More than 40% of Canada-U.S. trade is within-firm trade. Clusters (eg autos) matter. • Strong growth of intra-industry trade.
Bellingham Airport Bellingham Herald October 26, 2006
SeaTac Airport • Source: http://farm4.static.flickr.com/3379/3198460812_79dd9093c2.jpg
Canada-U.S. Free Trade: A Break with History Source: Hart, M. A Trading Nation
Free Trade Agreements • Canada-U.S. 1989, add Mexico in 1994. • Both countries have signed other agreements (U.S. more active lately) • NAFTA is much less ambitious than the EMU: no labor mobility, customs union, or common currency.
“Greedy” American Wolves Sir John A. Macdonald The Tariff “Wall” Happy Canadian Farmers And Manufacturers
Energy Trade An Important Supplier of Secure Energy
Source: “The World’s Largest Trading Relationship”, Embassy of Canada.
Oil Sands Reserves Source: www.ubc.ca
Environment and Natural Resources National versus Regional Policies
Health Care Are we following the Canadian path?