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 transcript:

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

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

Source: Embassy of CanadaEmbassy of Canada

Source: / Canadas Rank for States Exports of Goods

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.

Tradition …

The Modern Canadian Economy: Technology …

…Transportation.

Bellingham Airport Bellingham Herald October 26, 2006

The Modern Canadian Economy: Continental Integration & JIT

SeaTac Airport Source:

(Exports + Imports)/GDP

Trade As a Fraction of GDP: Canada

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

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.

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

Source: Hart, M. A Trading Nation

Energy Trade An Important Supplier of Secure Energy

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

Source:

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

Oil Sands Reserves Source:

Source:

Environment and Natural Resources National versus Regional Policies

Globe and Mail, Dec. 11, 2002

B.C. Carbon Tax Program

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

Health Care Are we following the Canadian path?

June 9, 2009

Health Care Spending, % of GDP, 2003

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

Banking and Finance Did Canada Get it right?

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

Source: Bank of Canada Web site

Social Programs and the Role of Government

Free trade agreement

Free trade agreement

Increasing Inequality of Income Free trade agreement

Taxes in Canada The level and mix of taxes.

Canada: 40% U.S.: 31%

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

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

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

Alphabet Soup Programs

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

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

Source: Bellingham Herald, Sept. 10, 2004

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