Us Canada Free Trade Agreement 1988

U.S. President Ronald Reagan welcomed the Canadian initiative and the U.S. Congress gave the President the power to sign a free trade agreement with Canada, subject to congressional revision until October 5, 1987. In May 1986, Canadian and U.S. negotiators began developing a trade agreement. The Canadian team was led by former Deputy Finance Minister Simon Reisman and Peter O. Murphy, former U.S. Deputy Trade Representative in Geneva. 2. Invites the Inter-Institutional Group to consult with the Senate Finance Committee and the House of Representatives Ways and Means Committee, as well as with some advisory committees, on the issues dealt with by this group and on the objectives and strategies of the United States in such negotiations; (2) from January 1990, submit an annual report to congressional committees on progress in such negotiations, in order to achieve greater discipline in Canadian subsidies, which have a particularly significant impact on trade between the two countries. However, between the mid and late 1990s, the Canadian dollar fell to a record high against the U.S.

dollar. Cheaper Canadian primary products, such as wood and oil, could be purchased duty-free by the Americans, and Hollywood studios sent their crews to make many films in Canada because of the cheap Canadian dollar (see Runaway Production and Hollywood North). The removal of protective tariffs meant that market forces, such as monetary values, had a greater impact on the economies of both countries than on tariffs. From 1935 to 1980, the two nations concluded a series of bilateral trade agreements that sharply reduced tariffs in both countries. [5] The most important of these agreements was the 1960s automotive trade agreement (also known as the auto pact). [6] [7] The Liberal Party of Canada had traditionally supported free trade. [4] Free trade in natural products was a central theme in the 1911 Canadian Legislative Elections. The Conservative Party campaigned with anti-American rhetoric, and the Liberals lost the election.

The issue of free trade has not returned to this level of national importance in Canada for many decades. The phenomenon of “cross-border shopping,” in which Canadians would take day trips to U.S. border towns to use duty-free goods and a high Canadian dollar, caused a mini-boom for these cities. The loss of many Canadian jobs, particularly in Ontario`s manufacturing industry during the recession of the early 1990s, was attributed (fairly or not) to the free trade agreement. calls on the U.S. Trade Representative (USTR) to consider whether any of Canada`s production-based tariff rebate programs on automotive products are inconsistent with the provisions of the General Agreement on Tariffs and Trade (GATT) or whether it is denied in the United States or implemented, contrary to the agreement, not to extend the application or duration of these programs; and (2) whether an investigation should be initiated to determine whether U.S. rights should be applied under trade agreements or whether some unfair trade practices should be addressed with respect to these production rights regimes. Invites the USTR to report to Congress by June 30, 1989 or no later than September 30, 1989, if it considers an extension to be necessary.