Canada’s Ties to the World

Post-war Period In the years after World War II, we have been examining Canada’s involvement in not only in international conflicts but also in international organizations – e.g., NATO, United Nations We will finish this part of the course by looking at some other ways that Canada developed links with other countries in the world

Middle Power Pierre Trudeau, who was elected prime minister of Canada in 1968, envisioned Canada as a “middle power” He sought to “bridge the gaps” not just between the superpowers but also between developed and developing nations

Trudeau believed that the rich countries of the world had a responsibility to help poor countries to develop their economies and improve their standards of living Trade and aid were important planks in Trudeau’s foreign policy

Canadian International Development Agency (CIDA) Set up in 1968 Its purpose was to increase foreign aid to developing countries Much of the assistance was in the form of tied aid Assistance to developing countries increased significantly during Trudeau’s time in office (from $277 million in 1969 to $2 billion in 1984)

The Commonwealth and La Francophonie Canada also was able to “build bridges between North and South [countries]” because of its membership in the Commonwealth and La Francophonie Commonwealth was made up of nations that once belonged to the British Empire La Francophonie was an organization of French-speaking countries, many of which were former colonies of France

Free Trade Agreements During the 1980s, when Brian Mulroney was prime minister, Canada became closer to the United States Mulroney wanted greater foreign investment in Canada and also embarked upon negotiations with the United States on a free trade agreement in 1987

Free Trade Agreement (FTA) The FTA removed tariffs on goods crossing border and opened up Canada to American investment and vice versa FTA supporters argued that by eliminating tariffs, Canada would attract more US investment  help Canadian industry grow and improve overall economy

Opponents of FTA said American companies would leave Canada and Canadians would lose their jobs Lead to de-industrialization of Canada because Canadian firms could not compete with huge American companies that could flood market with cheap goods Feared also the loss of Canadian independence FTA came into effect in 1989

North American Free Trade Agreement Negotiations on NAFTA – Canada, United States, and Mexico free trade zone – started in 1992 Opponents worried that Canadian companies would relocate to Mexico where wages were lower and environmental protection laws were laxer

NAFTA supporters argued that few companies would move and that most companies would rather stay in Canada – where there were better educated and skilled workers, transportation systems, social services, and social stability Jean Chretien’s Liberal government signed NAFTA into effect in 1994

Globalization Trend “sweeping the world by the end of the twentieth century” The world is “becoming one large community with interconnected needs and services”

Computers, the Internet, telephones, television, and radio have made the “global village” a reality Every day, Canadians are not only linked through technology with people from other parts of the world, but also “our well-being often depends on these connections”

Global Economy Canada is part of the global economy Trade with other countries for economic prosperity Joined international economic organizations such as APEC, G-8, OECD, OAS, and WTO Established free trade agreements with US and Mexico Canadians invest in global markets and we accept foreign investment in Canada

Some say globalization is a good thing  better standard of living, greater variety of goods and services On the negative side, large international corporations are becoming so powerful that governments may lose control over their affairs  public could be harmed Overwhelming economic power of US could make it difficult for Canada to maintain its identity