Domestic politics and Canadian foreign trade policy: Intrusive interdependence, the WTO and the NAFTA

Abstract

During the past two decades issues of domestic jurisdiction have become increasingly more important in the negotiation and implementation of international trade agreements. In Canada this intrusion on domestic policy space has created challenges and opportunities for both federal and provincial governments. Constitutionally, judicial interpretation has granted provincial governments increased legitimacy in matters of international trade. Institutionally, both Ottawa and the provinces have altered existing legislation and developed formalized consultative linkages as a result of these agreements. In addition, business and sectoral interests have further institutionalized their relationship with government, not always resulting in greater influence. Societal actors, however, have gained increasing relevance due primarily to demands for participation from civil society. Finally, ideational influences, especially in terms of global neo‐liberalism and economic regionalism, have also helped shape Canada's approach to international trade policy. This is not to suggest that domestic factors do not have a role in shaping developments at the international level but it is clear that contemporary international trade agreements have a direct impact on a wide range of internal variables related to Canadian trade policy.