Defence and economic linkages in Canadian – German relations: 1969–1982

Abstract

Pierre Trudeau and Ivan Head have argued that there was little or no link between defence and economic issues during Canada's search for a contractual trade link with the European Economic Community (EEC) in the 1970s. This interpretation contradicts the views of many analysts of Canadian foreign policy who have asserted that Canada's defence cutbacks undermined its ability to advance its wider political and economic objectives in Europe. Which interpretation is correct? To what extent was defence policy really linked with economic and trade policy? The authors examine these questions by drawing on recently declassified information found in Canadian and German archives. This historical evidence and, in particular, examination of the matter from the German perspective, supports the original, rather than a revisionist, interpretation. Defence and trade policy were very much linked. From the German perspective it is clear that there was an intense interest in Bonn in ensuring that Canada maintained a credible military presence on the continent. In this regard, German lobbying, playing the economic card and the development of a close personal relationship between Pierre Trudeau and Helmut Schmidt, helped to stabilize Canada's military commitment in Europe. While the Germans were quite content with this result, the failure of Canadian leaders to fully appreciate the links between defence and economic issues helped undermine the objectives being pursued by the Trudeau government in the area of trade diversification. Bilateral political and economic relations therefore remained relatively shallow and, from the Canadian perspective, never reached their full potential.