ABSTRACT

In the past few years I have been troubled by the potential severity of the difficulties Canada faces in its international trade relations. Obstacles faced by Canadian exporters are manifold and complex. On the one hand, the breakdown of trade barriers in Europe - beginning with the Euro-6, and by the end of this year potentially encompassing 18 countries and 380 million people - has forced many European industries to become more efficient and competitive, thus making international competition more difficult for Canadian industries. On the other hand, the persistent pro­ tectionist sentiments in the United States - by far the largest market

for Canadian goods and services, and probably still the wealthiest single market in the world - most recently manifested in the debates over the passage of the North American Free Trade Agreement, are not likely to be checked, regardless of the Agreement’s legislative successes - or, perhaps even because of the high price the Adminis­ tration of President Clinton was willing to pay to secure the passage of the Agreement through Congress.