Security And Shared Border Agreement Key To Preserving Canada's Trade Relationsh

The report, Canadian-American Relations in 2007, looks at the recent history of Canada and U.S. relations and trade disputes. It concludes that changes in governments on both sides of the border offer an opportunity to revive the bilateral relationship and co-operation that has traditionally existed between Canada and the U.S. "The Conservative government elected in 2006 has moved to improve political relations with the United States and President George W. Bush. Given the need for the Bush administration to score success in a foreign area outside of Iraq, a window of opportunity has opened for a new deal with Canada," Moens said. Moens points out that Canada has an enormous stake in the free flow of trade and investment to and from the United States. In 2005, 78 per cent of Canadian exports went to the U.S. with 65 per cent of our imports coming from the U.S. The total value of trade with the U.S. was $709 billion - about 51.8 per cent of Canada's GDP in 2005. Since the implementation of the Canada-U.S. Free Trade Agreement, Canadian trade with the U.S. has grown 120 per cent in real terms, with exports outpacing imports. The U.S. expression "security trumps trade" signals what is at stake should another terrorist attack take place on U.S. soil. While trade is the single largest Canadian interest in its relationship with the United States, the events since September 11, 2001 show the United States considers a stable security relationship of greater importance. When the U.S. perceives that its security interests are not met and its political ties at the highest level are distant, the free flow of trade may be endangered. http://www.fraserinstitute.ca/shared/readmore.asp?sNav=nr&id=806

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