The purpose of this research is to examine American involvement in the Canadian economy. American involvement with the Canadian economy occurs in three general areas the export/import trade between the two countries, the cross ownership of economic enterprises in the two countries, and tourism.
The implications of American involvement in the Canadian economy extend far beyond the strictly economic sphere at least, according to some Canadians. In the fall of 1988, a general election is taking place in Canada, just as it is in the United States. Canadians go to the polls on 21 November, while Americans vote about two weeks earlier, on 8 November. In Canada, the Free Trade Agreement (FTA) between the two countries is a major issue in the election campaign. The ruling Progressive Conservative Party claims that without the FTA, Canada will not be able to thrive economically in the future. The opposition parties the Liberal Party and the New Democratic Party by contrast claim that the FTA is a sell out of Canadian interests; that it will reduce Canada to the status of a Third World resource provider for the US, and will endanger the country's progressive social programs, and its culture.
Contrasting with the overriding significance of the FTA in the Canadian election is the agreements almost invisibility in the American presidential campaign. Because of the significance of the FTA in Canada, however, the purpose of this study is conducted within a framework of the FTA.
INITIATING AND RATIFYING THE FTA
The FTA was negotiated by the Reagan Administration in the US and the Mulroney Government in Canada over a 16 month period in 1986 and 1987. The agreement will become effective on 1 January 1989, if it is ratified by that date by the Canadian Senate. The FTA has been ratified by the US Senate and by the Canadian House of Parliament. While the Progressive Conservative Party of Prime...