ABSTRACT

In the world’s largest bilateral trading relationship, Canada, the smaller economy, is more dependent on the U.S. market for its exports and imports. Although the United States has greater market penetration into Canada, it has also been a rather loud complainer lately, as its exports to Canada have slipped and Canadian shipments across the border have mounted. Trade disputes between the two nations have recently become commonplace and have generated heated debates on trade distortions and formal negotiations on liberalization of trade. Many commodities have become the target of trade disputes. The variety of commodities affected-onions, potatoes, hogs, sugar blends, winter vegetables, raspberries, wine, corn, cattle, and forestry and fish products-is unique because of the geographic proximity, long border, and relatively free trade between the countries.