What are the negative impacts of the free trade between Canada and US on Canada's Foreign policy, independence and sovereignty?

Question

Discuss the relationship of Canada to the U.S. Given the close economic integration that the free trade pact has promoted explore what challenges this poses to our sovereignty, foreign policy, and independence.

Answer 1

Hi there,

The US Canda free trade agreement (FTA) has has a lot of benefits for both sides and, broadly speaking, has benefited them both economically. But the very nature of a free trade agreement is to restrict participating countries.

The main impact that the FTA has on Canada's sovereignty is restricting them from implementing certain economic policies, like tariffs, to boost specific industries. Canada could not, for example, protect its dairy industry from competing with American imports by making the imports more expensive.

The economic interrelation between the US and Canadian economies poses a threat to Canada's economic stability. Economic downturns in the US cause economic downturns in Canada, as recent history has shown. This produces a new foreign policy incentive for the nation to be concerned with US economic politics and economic policy, which is outside of its control.

In answering this question further, I would look for concrete examples of Canadian economic policy prior to the FTA. What policies did they want to implement before that they no longer can? Talk about how the 2008 economic recession, which really started in the USA, affected Canada.

If you want more help with this question I'd be happy to talk more. Just send me a message or schedule a tutoring session!