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September 17, 2005

US-Canada: A key relationship under strain

While foreign perceptions of the US manifest themselves most through speeches and writing, they can also be detected in what people choose to do, or where they choose to go. The Economist tracks Canadian-American relations through the volume day trips made across their common border. For the last twenty years, the number of day-long visits has varied regularly according to affordability:

When the Canadian dollar went up, shoppers would flood south and a few budget-conscious American tourists would forgo their vacation among the moose, mountains and Mounties. There was even a rough rule of thumb: for every 10% appreciation of the loonie (as Canadians call their currency) against the greenback, there would be a 13% increase in the number of Canadians going south and a 3% decrease in the number of Americans heading north.

Lately, this trend has broken down – despite a significant appreciation of the Canadian dollar, visits by Canadians are flat, and more Americans are staying away then expected. The article puts forward two explanations – that people are deterred by the length and hassle of the post-Sept. 11th border controls, and that diverging cultural and political values make visits less appealing. It sites a survey of Americans conducted by the Ontario provincial government, in which Canadian anti-Americanism was the number 2 reason given for opting against vacationing in Canada, as well as fear of terrorism and Canadian recognition of gay marriage. Canadians have similarly reservations about the US – the article quotes one tourism official noting that it’s “Both sides [that] feel less welcome in the other country.”
Another article chronicles a ten-year trade dispute over softwood lumber. A marginal and unknown issue in the US, in Canada it's front-page material. The dispute hinges on tarrifs placed on Canadian softwood exports, which have been determined to violate the NAFTA agreement by tribunals organized under the treaty - seven times. After losing its final appeal, the US announced it would maintain tarrifs in open violation of the NAFTA agreement. The Canadians responded by abandoning negotiations, and both sides have resorted to threats and name-calling. The article notes that, while the Canadians have little direct leverage, they don't intend to keep silent - "Canada also plans an information campaign telling other countries seeking trade deals with the United States what it has learned about the value of its signature on a treaty."

Posted September 17, 2005 08:07 PM

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