important exceptions. Prior to the FTA, Canada's Foreign Investment Review Agency (FIRA) made it difficult for American interests to acquire Canadian firms. Further, Canada protected its agricultural, financial, and cultural industries from much of the potential American competition. Similarly, the United States unilaterally imposed high tariffs on many Canadian goods, as a means of protecting American industries. Examples are wood shingle shakes, softwood lumber products, steel, fish, and some agricultural products. Among other objectives, the FTA was designed to end these barriers to trade between the two countries.
With respect to a free trade agreement between the United States and Canada, each of the countries is, in reality, pursuing different goals. The United States badly desires access to the financial services sector in Canada, and, additionally, would like to see Canadian protection of agricultural products, generic drugs, and cultural activities ended.
Canada badly desires to see an end to the unilateral imposition of countervailing duties on its products by the United States, and Canada would like to create a system of binding arbitration for trade disputes between the two countries. Additionally, Canada would like for the United States to stop its agricultural subsidies.
Under the FTA, all tariffs and most restrictions on trade between the United States and Canada will be phased-out by 1999. Canada will be able to retain its agricultural marketing boards; however, with American agricultural products able to move across the border freely, must of their effectiveness will be lost. The United States did agree to a binding arbitration dispute settling mechanism in the FTA. Unfortunately for Canada, however, the United States retained the right to impose countervailing duties unilaterally, in the time before arbitration occurs. If Canada objects to such action, the Canadian ...