Canadian Paper

Canadian/ U.S. Business
Response Paper

The United States and Canada developed a business interconnectivity between their nations in the early building processes because each country had resources and services that the other country didn’t have. With the introduction of the Industrial Revolution in America, new forms of transportation were created to ship goods across nations. The United States was able to find cheaper labor in Canada, while Canada was able to spread their goods into a larger market. In 1855, the Canadian-American Reciprocity Treaty was passed between the British North American Provinces of Canada and the United States. Before it was terminated in 1866, it provided free trade for all natural products as well as free access to the St. Lawrence River for United States ships. The treaty allowed Canadians to enter a free market of over 30 million people, while it opened the United States market to the natural exports of Canada, allowing our country to discover wider markets. The early relationship between the United States and Canada was not an agreement made easy. “In Canada, where, for thirty years, reciprocity had been energetically, at times frantically, sought, enthusiasm had calmed down or was being deliberately suppressed. It was recognized that any move must come from the United States, and there was a certain unwillingness to play once more the part of the unsuccessful suitor” (Glazerbrook, pg. 166) The United States had refused reciprocity when Canada wanted it and there was objections that reciprocity would endanger the imperial relation between the two nations. Although reciprocity was rejected between the nations in its earliest forms, transportation and communications were vital factors in the foreign relations of Canada during that trade period. Canada’s postal service and telegraph facilities allowed them to form links with other countries. After the industrial revolution, the steam engine invited traffic to follow the shortest lines. The Canadian economy was very dependent on the external contributions and relationship they had with the United States. Early development between Canada and the United States has had a huge impact on the present day business relations they engage in today. If it wasn’t for the reciprocity act they passed 150 years ago, we may not see the type of trade we have today with Canada. The North Atlantic Free Trade Agreement, signed on January 1, 1994, has opened the door for free trade and ended tariffs on variety of goods and services between our two nations. The United States and Canada now hold the largest bilateral agreement in the world. Our relationship with Canada in the early stages has led us to all the key issues we talk about today: transportation, roads, waterways, people, and communications. We rely on Canada very heavily for resources. TransCanada is the biggest oil supplier to the United States and plans on constructing the Keystone XL Pipeline in 2013from Hardisty, Alberta to Steele City, Nebraska. When the United States lost power in Manhattan, Canada was able to flip a switch in their country to turn the power back on in New York. Canada relies on the United States for our military power. They have a small population of 32 million people in Canada and their military power is not as strong as ours. Canada can only lean behind us for support. The relationship between the United States and Canada today is not at its best. A lot of current events, such as the 9/11 terrorist attacks, has changed Canada’s view of our country. The question is: Will our two countries always be knotted together, or will there be an end to it all?