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often directed at Canada, as well as at other countries, and such action provided a Canadian motivation for seeking the FTA.

In the mid1980s, prior to the implementation of the FTA, Canada exported approximately US$90 billion in goods and services to the US, while the US exported approximately US$50 billion in goods and services to Canada.42 Most of these goods and services crossed the border free of duties and other barriers.43 There were, however, some important exceptions. Canada's Foreign Investment Review Agency (FIRA) made it difficult for American interests to acquire Canadian firms. Further, Canada protected its agricultural, financial, and

42Council of Economic Advisers, Economic Report of the President (Washington: U.S. Government Printing Office, 1989), p. 355.

43"Big Hug From Uncle Sam," Time, 19 October 1987, 56.

28cultural industries from much of the potential American competition. Similarly, the US unilaterally imposed high tariffs on many Canadian goods, as a means of protecting American industries. Examples were wood shingle shakes, softwood lumber products, steel, fish, and some agricultural products. Both the Reagan Administration and the Mulroney Government would, they said, like to end these barriers to trade between the two countries.

The negotiating partners stated that they believed that a free trade agreement between the two countries would (1) increase employment in each country, and (2) increase the gross national product (GNP) in each country. These were additional reasons for promoting the FTA. In Canada, the Mulroney Government was desperate for any kind of an agreement which wouldboost its dismal (at that time) position in the national political polls. In the US, the Reagan Administration was almost as anxious to demonstrate to the other major international economic powers that it was serious about correcting the coun try's international trading problems.

With r...