ABSTRACT

Trade and investment in raw materials make up a major part of the economic ties between the United States and Canada. That nexus constitutes the largest set of foreign economic relations for each country. Foreign-owned companies are important in the Canadian mineral industry, and among them US-owned companies predominate. Such an intimate and asymmetrical relationship is bound to create many difficulties. On the Canadian side the large US presence has helped stimulate economic nationalism, a loose term for a wide range of attitudes and policy prescriptions that command varying degrees of allegiance within Canada. The most important aspect of the jurisdictional problem is quite different in the two countries. In Canada the main issues center on the division of powers between the federal government and the provinces; in the United States the relevant division is between Congress and the executive branch.