A new report suggests Ottawa’s biggest policy shift wasn’t driven by politics. It was driven by the possibility that Canada’s closest ally could no longer be treated as a dependable one.
I just had a bit of an epiphany here! I was in my senior years of college/university when Mulroney and Reagan cemented the original FTA between Canada and USA. At the time, Canada was very much trying to do something similar with Europe, and many other elements were leaning International.
Then Reagan showed up, waved the magic promise of "something better, North America-style" (though Mexico wasn't in on this at that point), and well, Canada pivoted heavily into FTA (and then NAFTA).
So, we could revisit all of the coulda-woulda-shoulda/was integration with the USA better or worse, etc., etc. The answer is (and was) that there are pros/cons all ways around, but it sure is EASIER to do things north-south, and that won the day!
So, later in life (over the past decade or two), I've always wondered WHY Reagan was so keen on this deal with Canada. And now the epiphany: He saw that we might slip away to do trade elsewhere, and suddenly thought, "Gee, that won't work if we're trying to dominate the continent. Better rope them into a deal (that Europe would kill for) PDQ before it's too late!"
Okay, the "this is good for USA" part was obvious to me since the start. What wasn't so obvious (behind that "we are the most important country in the world and you're not" veneer) was how desperate the USA has been to lock in that control, and by desperate, I mean they FEAR what could happen if they are NOT able to dictate everything. That's the significant thing that just hit this weekend, and with your article, Fred!
Very good point, i think viewing the current administration under the lens of Fear kinda answers a few questions for me about some of the actions they have taken, and there reactions to what they have put in motion.
I just had a bit of an epiphany here! I was in my senior years of college/university when Mulroney and Reagan cemented the original FTA between Canada and USA. At the time, Canada was very much trying to do something similar with Europe, and many other elements were leaning International.
Then Reagan showed up, waved the magic promise of "something better, North America-style" (though Mexico wasn't in on this at that point), and well, Canada pivoted heavily into FTA (and then NAFTA).
So, we could revisit all of the coulda-woulda-shoulda/was integration with the USA better or worse, etc., etc. The answer is (and was) that there are pros/cons all ways around, but it sure is EASIER to do things north-south, and that won the day!
So, later in life (over the past decade or two), I've always wondered WHY Reagan was so keen on this deal with Canada. And now the epiphany: He saw that we might slip away to do trade elsewhere, and suddenly thought, "Gee, that won't work if we're trying to dominate the continent. Better rope them into a deal (that Europe would kill for) PDQ before it's too late!"
Okay, the "this is good for USA" part was obvious to me since the start. What wasn't so obvious (behind that "we are the most important country in the world and you're not" veneer) was how desperate the USA has been to lock in that control, and by desperate, I mean they FEAR what could happen if they are NOT able to dictate everything. That's the significant thing that just hit this weekend, and with your article, Fred!
Grant, that's a fascinating historical perspective.
Whether Reagan's motives were strategic, economic, or both, one thing is clear...
geography made north-south integration the easy choice, and for decades it worked well for both countries.
What's changed isn't the geography...
it's the level of trust. When trust weakens, diversification stops looking like a political choice
and starts looking like prudent risk management.
I think that's the real story we're watching unfold.
Very good point, i think viewing the current administration under the lens of Fear kinda answers a few questions for me about some of the actions they have taken, and there reactions to what they have put in motion.
Very well said I am so glad we
we.have a PM who understands this and who is diversifying our trade.