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Canada-US Relations and Canadian Foreign Policy

Canada-US Relations and Canadian Foreign Policy. Douglas Brown Politics 220 April 2006. Canada-US Relations and Canadian Foreign Policy. The link between globalization and continentalism Dealing with asymmetry in North America Bilateralism versus Multilateralism The “soft power” thesis.

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Canada-US Relations and Canadian Foreign Policy

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  1. Canada-US Relations and Canadian Foreign Policy Douglas Brown Politics 220 April 2006

  2. Canada-US Relations and Canadian Foreign Policy • The link between globalization and continentalism • Dealing with asymmetry in North America • Bilateralism versus Multilateralism • The “soft power” thesis

  3. Globalization and Continentalism • Canada has pursued degrees of economic nationalism since the 1870s (eg Macdonald’s National Policy) • However, Canada’s trade with USA surpassed trade with Britain in 1921 • The Canadian economy became increasingly integrated with the US during and after the Second World War

  4. Why did Canada enter into free trade in 1988? • To stop the string of protective tariffs and other US measures affecting Canada since the early 1980s • To signal an end of the Trudeau era of economic nationalism • To secure and expand access to the US market • As a platform for global trade and investment • As a policy for achieving global competitiveness

  5. Effects of free trade • Huge increase in bilateral trade and investment – 50 percent over ten years • Significant adjustment in manufacturing sectors • Big generator of growth in all provinces • No significant policy convergence effects…but fiscal conservatism has occurred

  6. Asymmetry in North America • Canada much more dependent on the US than vice-versa • Canada does not count as much in US politics • Canadians know much more about the USA • Allan Gottlieb (Canada’s Ambassador to US in 1980s): • Got to go to the top– get good relations with President • Need a formal integration relationship (rules-based) to get past American indifference and ignorance

  7. Asymmetry in North America • USA = more than 10 times bigger population, and about 15 times bigger economy • Mexico and Canada combined still = only about one-third of US population • US political system therefore not inclined to share power with Canada and Mexico • Means relying on negative integration measures, rather than positive integration

  8. Types of integration • Negative integration measures = restricting what governments can do (market liberalization) • Positive integration = harmonizing what governments do (harmonized regulation) • Positive integration requires strong decision-making institutions, like in European Union. • NAFTA and FTA: weak institutions, so mainly rely on negative integration.

  9. Bilateralism versus multilateralism • Bilateralism (Canada-US relations) will always be a huge part of our foreign policy. • Multilateralism (relations with the broader world) has also always been a major goal. • Can we successfully do both?

  10. Examples of Multilateralism • Building the United Nations and its institutions (eg UNESCO, UNICEF) • Mutual Defence through NATO • G-7 and G-20 • IMF, World Bank and WTO • Commonwealth and Francophonie summits

  11. Joseph Nye’s soft power thesis • Smaller countries can be effective in deploying “soft” or intangible resources such as culture, values, moral reputation, negotiating and mediation skills • A substitute for “hard power” – arms and money? • Works best in multilateral context • Canada, Sweden, Netherlands, are countries seen as having a lot of soft power.

  12. Brooks’ thesis • Irony that Canada’s greater economic integration with the United States…may well have created the political space for a more independent foreign policy…”

  13. Canada’s foreign policy under Chrétien • Pursuing a “human security” agenda • International Criminal Court • Landmine Convention • Kyoto Accord • Rebuilding the United Nations • US interests lukewarm or hostile (under Bush) to all of these initiatives.

  14. Where bilateralism and multilateralism collide • Chrétien government decision on not joining war on Iraq, and perceived softness on war on terror. • Reluctance to agree to a North American security perimeter arrangement • Increasing public antipathy by Canadians towards Bush regime

  15. Harper’s approach? • Recognize limits to “soft power” – rebuild arms and aid • Restore the bilateral relationship – find more common ground with the US • Continue to pursue multilateralism, but without isolating the US

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