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The Canada-U.S Economic Relationship Study Canada Summer Institute, 2010 Dr. Paul A. Storer Americas Unhappy Borders The Economist, 8/27/05 Peace Arch.

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Presentation on theme: "The Canada-U.S Economic Relationship Study Canada Summer Institute, 2010 Dr. Paul A. Storer Americas Unhappy Borders The Economist, 8/27/05 Peace Arch."— Presentation transcript:

1 The Canada-U.S Economic Relationship Study Canada Summer Institute, 2010 Dr. Paul A. Storer Americas Unhappy Borders The Economist, 8/27/05 Peace Arch Crossing State Department Photo

2 Outline of Talk Canada-U.S. Interdpendence: - National and Regional Trade Lessons from Canada: - Environment - Health Care - Banking System - Inequality and Social Programs - Costs and Benefits of Trade

3 Source: Embassy of CanadaEmbassy of Canada

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16 Source: / Canadas Rank for States Exports of Goods

17 Canada-U.S. Integration 36 states have Canada as their largest export market. More than 40% of Canada-U.S. trade is within-firm trade. Clusters (eg autos) matter. Strong growth of intra-industry trade.

18 Tradition …

19 The Modern Canadian Economy: Technology …

20 …Transportation.

21 Bellingham Airport Bellingham Herald October 26, 2006

22 The Modern Canadian Economy: Continental Integration & JIT

23 SeaTac Airport Source:

24 (Exports + Imports)/GDP

25 Trade As a Fraction of GDP: Canada

26 Source: Hart, M. A Trading Nation Canada- U.S. Free Trade: A Break with History

27 Free Trade Agreements Canada-U.S. 1989, add Mexico in Both countries have signed other agreements (U.S. more active lately) NAFTA is much less ambitious than the EMU: no labor mobility, customs union, or common currency.

28 The Tariff Wall Greedy American Wolves Happy Canadian Farmers And Manufacturers Sir John A. Macdonald

29 Source: Hart, M. A Trading Nation

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31 Energy Trade An Important Supplier of Secure Energy

32 U.S. Petroleum Imports (2006) (Source: U.S. Energy Info. Agency)

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34 Source:

35 Source: The Worlds Largest Trading Relationship, Embassy of Canada.

36 Oil Sands Reserves Source:

37 Source:

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40 Environment and Natural Resources National versus Regional Policies

41 Globe and Mail, Dec. 11, 2002

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45 B.C. Carbon Tax Program

46 Source: 2008 Budget, B.C. Ministry of Finance

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48 Health Care Are we following the Canadian path?

49 June 9, 2009

50 Health Care Spending, % of GDP, 2003

51 Health Care as a % of GDP U.S. Canada

52 Banking and Finance Did Canada Get it right?

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54 The Economist, U.S. Edition, May 23, 2009

55 Source: Bank of Canada Web site

56 Social Programs and the Role of Government

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59 Free trade agreement

60 Free trade agreement

61 Increasing Inequality of Income Free trade agreement

62 Taxes in Canada The level and mix of taxes.

63 Canada: 40% U.S.: 31%

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65 Trade, Culture, and Sovereignty Source: Aislin Cartoon Montreal Gazette Source: Molson I Am Canadian ad

66 The Post-9/11 Reality How do we balance security and integration?

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68 Canada: A Source of Vulnerabilities? Source: Bellingham Herald Source: ABC newsSource: International Border Commission

69 Alphabet Soup Programs

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71 DHS Secretary Napolitano: Hope and Change? View #1: the myth Im trying to bust is that theres no real border between Canada and the United States View #2: We dont want to damage economic security in the name of homeland security. Source: Globe and Mail

72 U.S. – Canada Softwood Lumber Agreement 2006 January 2007

73 Source: Bellingham Herald, Sept. 10, 2004


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