Competition and Function

Abstract

The Canada U.S. Free Trade Agreement is intended to lower and ultimately remove barriers to a free exchange of goods and services between the two countries. It could therefore be seen as taking the two countries a step closer to becoming an integrated economic unit. Hence it is potentially one of the most important agreements that the two countries have struck in the past century. Pragmatically speaking, the development of an economic union between two nations is of course a momentous task. The sheer number of regulations and provisions that have to be examined, integrated or removed; the sheer size of the administrative, regulatory and appeal mechanisms that have to be instituted and fine-tuned all this (and much more) require, resources, time and above all political good will. There is not much doubt that the U.S. and Canada have the good will that is necessary to achieve these tasks. The very ratification of the Agreement itself bears vivid testimony to that fact. However, the implementation of this sort of treaty requires more than good will. It also requires agreement on fundamental economic and social values. Again, there can be little doubt that from a global perspective, Canada and the U.S. share many of the same attitudes in this respect. The differences in philosophical outlook, insofar as they exist say, on such matters of government subsidies to specific industries, preferential