National Power in Canada

Ahthough in terms of geographic size, Canada is the second largest country in the world, its real strengths derived from geography are related to strategic position and natural resources, more than to sheer size. With broad access to both the Pacific and the Atlantic Oceans, Canada is a maritime power, and its oceanic economic zones provide it with control of major fisheries. The country's arctic territories enable it to claim control over the important water route near the North Pole, although the United States disputes this claim with a counter claim that the Arctic waterway is international in character.

Geographically, Canada is also strategically important because of its more than threethousand mile long border with the United States. In the American view, Canada provides a significant strategic buffer on its north. Canada is, thus, of

1 2great strategic importance to the Americans, who would slip into a deep paranoia if an unfriendly government controlled Canada.

Canada is one of the world's industrial market economies (The World Bank, 1989). Further, among the industrial market economies, Canada is one of the Grou

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ross 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 counterveiling duties unilaterally, in the time before arbitration occurs. If Canada objects to such action, the Canadian government must still go through the various exist ing American dispute settling procedures. If after these procedures were exhausted, the Canadians are still dissatis fied, the binding arbitration will be implemented. By this time, however, the disputed duties might have been in place for years, and any damage they would have done to Canadian industry would be history. Except for a few cultural industries in Canada, American and Canadian firms, under the FTA, have unlimited access to the other's markets. Over the longterm, proponents of the FTA claim that it will lead to an increase in the Canadian gross national product of fivepercent annually, and an increase in the American gross national product of onepercent annually. They expect employment levels to increase over the longterm in each country; however, historically, employment levels have increased in e
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Approximate Word count = 1692
Approximate Pages = 7 (250 words per page)

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