The Canada-U.S Economic Relationship Peace Arch Crossing State Department Photo “America’s Unhappy Borders” The Economist, 8/27/05 Study Canada Summer Institute, 2009 Dr. Paul A. Storer
Outline of Talk • Canada-U.S. Interdependence: - Scale and Composition of Trade - Costs and Benefits of Trade • Lessons from Canada: - Environment - Health Care - Banking System - Inequality and Social Program
Canada-U.S. Integration • 36 states have Canada as their largest export market. • More than 40% of Canada-U.S. trade is within-firm trade. Clusters (eg autos) matter. • Strong growth of intra-industry trade.
Bellingham Airport Bellingham Herald October 26, 2006
Energy Trade An Important Supplier of Secure Energy
Source: “The World’s Largest Trading Relationship”, Embassy of Canada.
Oil Sands Reserves Source: www.ubc.ca
The Post-9/11 Reality How do we balance security and integration?
Canada-U.S. Free Trade: A Break with History Source: Hart, M. A Trading Nation
DHS Secretary Napolitano: Hope and Change? View #1: “the myth I’m trying to bust is that there’s no real border between Canada and the United States” View #2: “We don’t want to damage economic security in the name of homeland security.” Source: Globe and Mail
Canada: A Source of “Vulnerabilities?” Source: Bellingham Herald Source: ABC news Source: International Border Commission
Environment and Natural Resources National versus Regional Policies
Health Care Are we following the Canadian path?
The HMO Approach
The Canadian System Like my Group Health (HMO) cards except: - Good everywhere - No co-pay/deductible
U.S. Canada Health Care as a % of GDP
Banking and Finance Did Canada “Get it right?”