The relationship between us and Canada is at risk due to the North American Free Trade Agreement (NAFTA). The agreement between our two countries was designed to benefit both our countries. When President Bill Clinton negotiated the treaty, he was very aware that Canadians were very angry with U.S. imposing high tariffs on their import goods such as aluminum.
” Canadians were upset because they felt the United States was taking advantage of their technological advancement by putting higher aluminum tariffs on Canadian goods. Many Americans said we were taking advantage of Canada’s lack of a competitive product like aluminum. Canada was also upset because it felt that this new law would hurt its economy.” former president Bill Clinton
After realizing the pitfalls of the deal, the two governments came up with a plan to remedy the situation. “To protect our side of the deal, our government proposed a bill that contained tariffs on imported automobiles from Canada but eliminated the national security threat posed by the high tariffs on aluminum. As a result, Canadian goods began to gain popularity in the U.S. market. We removed the tariffs on all Canadian goods except for those in gasoline and other petroleum products.” The United States and Canada are currently trading goods at an average price level of roughly $1.75.
Recently, President Bush has once again pushed the idea of eliminating the national security threat posed by aluminum tariffs. “The Canadians have been very cooperative and have offered many concessions,” said our ambassador to Canada. Unfortunately, it appears that Canada is not too willing to cooperate when it comes to removing the aluminum tariffs. Although our Ambassador to Canada suggested that our two countries may look into easing the restrictions on trade between us, he refused to say whether or not Canada is prepared to do the same. “We’re just looking at the situation and evaluating it at this time,” he said.
Nafta has become a hot button issue in the last couple of years. Many Americans feel that Nafta threatens American jobs, while Canadians argue that our country benefits from Nafta and that the benefits outweigh the disadvantages. NAFTA is a free trade agreement, designed to encourage the negotiation and integration of North America’s labour markets. The national security issues related to NAFTA were a major stumbling block for the Canadian government and their attempt to join the trans-Pacific economic pact.
One of the areas where the Canadians are concerned is the issue of excessive tariffs on imports coming from the United States and Canada. The protectionist tendencies of our neighbors, especially in the case of NAFTA, are causing some consternation among Canadians. However, there is an even bigger problem brewing between our neighbors and our southern neighbors. That is, the effects of the presence of a large U.S. navy base in Japan in the vicinity of the Canada-American treaty area, which has been causing severe problems with the control of the sea.
Recently, a Chinese official stated that the presence of the US naval base in Okinawa was unacceptable to the Chinese. The prime minister of Canada is meeting with her counterparts in China today. The prime minister of Canada met with the president of China today and discussed the situation in Okinawa with respect to this issue. The prime minister stated that she looks forward to working with the Chinese and Japanese to help resolve the problem. As a result of this meeting our two countries have decided to increase our bilateral trade with one another.
There are many things to worry about in regards to the future relationship between the United States and Canada-especially now that NAFTA is being implemented. However, there is no doubt that NAFTA will bring greater trade opportunities to the Canadian economy and Canadian corporations. The prime minister of Canada stated that NAFTA is an excellent trade agreement for both China and the United States. The prime minister of Canada believes that NAFTA will bring much positive impact to Canada-and to the United States.