Drouin, Marie-Jos�e; Malmgren, Harald B.
December 1981
Foreign Affairs;Winter81/82, Vol. 60 Issue 2, p393
Academic Journal
This article discusses issues concerning the foreign relations between the U.S. and Canada as of 1981. Relations between Canada and the U.S. have become more strained than at any time in recent memory. There have been many earlier periods of tension, but the policy orientations of the two capitals in late 1981 appear to be far more divergent than in the past. The two governments seem to be on a collision course, in a context that political leaders cannot fully control. Under the administration of U.S. President Ronald Reagan, Washington is intent upon further liberalization of the economy, domestically and internationally, and upon reducing the distorting role of government intervention in key sectors. Ottawa seems to be seeking means to insulate itself, not only from the U.S. economy but from other undesirable external economic forces, while moving to enhance rather than reduce the government role in shaping the Canadian economy. Canada has its own varied list of complaints and grievances against the U.S. But it is the list of U.S. complaints that has become both long and much more focused on basic policy differences. The most contentious issues are the new Canadian National Energy Program, the expanding role of the Foreign Investment Review Agency, the recent establishment of new official bodies to insure adequate benefits to Canadians of major energy and other natural resource projects, and various other efforts to discriminate against outsiders and favor Canadians.


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