by Alexander Moens, Alex Bartos
January 24, 2014
Economic and political relations between Canada and the United States have worsened since the Fraser Institute’s previous report on the state of Canada-US relations. Canadian merchandise exports to the United States have weakened in relative terms. At the same time, there is not enough Canadian export diversification to other destinations to make up this relative loss. Border crossing data suggests that Americans are travelling far less to Canada and that the commercial costs of crossing the border remain too high. The Catch-22 of Canada’s ongoing trade dependency with the USA and its modest success in diversification can only be lessened by strategic and systematic attention from the US Executive branch. Such a strategy would involve lowering North American barriers to trade and negotiating freer trade with the rest of the world.