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C A N A D A A N D I N T E R N AT I O N A L A F FA I R S
Canada–US Relations
Sovereignty or Shared Institutions?
Edited by David Carment and Christopher Sands
C A N A D A A M O N G N AT I O N S 2 0 1 8
Canada and International Affairs
Series Editors
David Carment
NPSIA
Carleton University
Ottawa, ON, Canada
Philippe Lagassé
NPSIA
Carleton University
Ottawa, ON, Canada
Meredith Lilly
NPSIA
Carleton University
Ottawa, ON, Canada
Palgrave’s Canada and International Affairs is a timely and rigorous
series for showcasing scholarship by Canadian scholars of international
affairs and foreign scholars who study Canada’s place in the world. The
series will be of interest to students and academics studying and teaching
Canadian foreign, security, development and economic policy. By focus-
ing on policy matters, the series will be of use to policy makers in the
public and private sectors who want access to rigorous, timely, informed
and independent analysis. As the anchor, Canada Among Nations is the
series’ most recognisable annual contribution. In addition, the series
showcases work by scholars from Canadian universities featuring struc-
tured analyses of Canadian foreign policy and international affairs. The
series also features work by international scholars and practitioners work-
ing in key thematic areas that provides an international context against
which Canada’s performance can be compared and understood.
Canada–US Relations
Sovereignty or Shared Institutions?
Editors
David Carment Christopher Sands
NPSIA Paul H. Nitze School of Advanced
Carleton University International Studies
Ottawa, ON, Canada Johns Hopkins University
Washington, DC, USA
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer
Nature Switzerland AG 2019
This work is subject to copyright. All rights are solely and exclusively licensed by the
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on microfilms or in any other physical way, and transmission or information storage and
retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are
exempt from the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors, and the editors are safe to assume that the advice and
information in this book are believed to be true and accurate at the date of publication.
Neither the publisher nor the authors or the editors give a warranty, express or implied,
with respect to the material contained herein or for any errors or omissions that may have
been made. The publisher remains neutral with regard to jurisdictional claims in published
maps and institutional affiliations.
This Palgrave Macmillan imprint is published by the registered company Springer Nature
Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Series Preface
v
vi Series Preface
1. As the anchor, Canada Among Nations is the series’ most rec-
ognisable annual contribution. Canada Among Nations is an
established volume produced by the Norman Paterson School of
International Affairs (NPSIA), Canada’s oldest, largest, and top-
ranked interdisciplinary graduate school of international affairs
and a full and founding member of the Association of Professional
Schools of International Affairs (ASPIA) centrally located in
Canada’s capital, Ottawa. Canada Among Nations has been in
place since 1984 and become part of the international affairs
studies landscape, in Canada and abroad, for 30+ years. Canada
Among Nations provides thematic reviews of key international pol-
icy issues affecting Canada and the world and has been used exten-
sively in university courses at both the graduate and undergraduate
levels. Looking ahead, its purpose is to provide a broad-spectrum
review of the year in passing and focus on the pressing issues and
agendas facing the country and its place in the world. We encour-
age edited volumes in the range of 50,000–100,000 words.
2. In addition, the series features work by international scholars and
practitioners working on key themes or policies. These compilations
will consist of comparative multi-country studies against which
Canada’s performance can be better understood in its proper con-
text, relative to other similar countries. Examples include subjects
like comparative evaluations of foreign aid programs of OECD
countries or defence spending by NATO member-states. These
studies follow the Pivot Series format. We encourage monographs
in the range of 25,000–50,000 words and edited volumes in the
range of 50,000–100,000 words.
3. Finally, the series showcases work by scholars from Canadian uni-
versities and research groups, featuring structured analyses of
Canadian foreign policy and international affairs. Manuscripts by
individual authors as well as thematically-oriented edited volumes,
produced by established professors, emerging scholars, and senior
doctoral students are welcome. We encourage monographs in the
range of 25,000–50,000 words.
Series Preface vii
ix
x Acknowledgements
1 Introduction 1
David Carment and Christopher Sands
Part I Debates
xi
xii Contents
14 Conclusion 283
Christopher Sands and David Carment
Notes on Contributors
xiii
xiv Notes on Contributors
xix
List of Tables
xxi
CHAPTER 1
Introduction
With the results of the North American Free Trade Agreement (NAFTA)
re-negotiations only now being made public, pundits and academics are
asking what lies ahead for the Canada–US relationship. On September 30,
2018 it was revealed that NAFTA would undergo a name change to the
United States, Mexico, and Canada Agreement (USMCA) reflecting, per-
haps, a shift from free trade to managed trade in which the United States
would play a primary role. Some observers have argued that President
Donald Trump got the better of the deal and yet arranged it so all three
countries could declare victory (Ivison 2018). Indeed, the substance of the
agreement indicates that both Canada and Mexico made a number of sig-
nificant concessions to the United States. In the words of Larry Kudlow,
Trump’s economics adviser: “Canada gave very graciously” (Ivison 2018).
In reality, Trump used the power of tariffs to bring Canada and
Mexico in line. Very early on in the negotiations Trump made clear his
D. Carment (*)
NPSIA, Carleton University, Ottawa, ON, Canada
e-mail: david_carment@carleton.ca
C. Sands
Paul H. Nitze School of Advanced International Studies,
Johns Hopkins University, Washington, DC, USA
e-mail: csands@jhu.edu
intent to bring investment back to the United States and, in the end,
managed to do exactly that. Some may call that behavior bullying, while
others may interpret it as part of Donald Trump’s “America first” strat-
egy. Certainly, with respect to the now all important clause regarding
future Canadian trade negotiations with China, it would seem that the
United States has imposed on its North American partners a degree of
veto power that heretofore never existed. To wit: “entry by any party
into a free trade agreement with a non-market country shall allow the
other parties to terminate this agreement”. The “America first” strategy
holds.1
For Canada the alternative to accepting these terms was rather
bleak; namely no deal at all. That is why it was essential that Canadian
negotiators convince their American counterparts to retain NAFTA’s
all-important Chapter 19 dispute resolution mechanism. American
negotiators pushed Canada to have trade disputes resolved through US
courts, an alternative that would be tantamount to surrendering sover-
eignty to a foreign power. Beyond the increases in dairy imports from
the United States, an agreement to coordinate foreign exchange policy,
higher wages for auto workers, and caps on auto imports, not much was
changed in this agreement relative to the old NAFTA. Certainly, the deal
was not what Canada’s negotiators had hoped for. Canada had to fight
very hard to maintain the status quo in a very difficult three-way nego-
tiation. There was limited success, for example, in engaging the United
States on Canada’s progressive trade agenda, labor mobility and big
pharma. More importantly, Trump’s all-important tariffs on aluminum
and steel remain, a bargaining chip the United States holds in reserve for
future considerations.
With the frantic and often contentious trade negotiations concluded
it might be reasonable to ask if the relationship between the two coun-
tries will ever be the same. There are good reasons to be optimistic. To
understand why that is so we must consider the depth of the relation-
ship. When we think of the “deep state” we imagine a country run by
narrow and private interests outside the realms of accountability and
transparency; a state captured by unelected secretive powers whose
actions run parallel to and often in contradiction to the public good and
1 According to John Ivison (2018) the creation of a macroeconomic committee with rep-
resentatives from all three countries to consider exchange rate policy has implications for
the Bank of Canada’s independence which are not fully understood.
1 INTRODUCTION 3
2 This section draws from “Claiming the 21st Century?” in Reflections of Canada:
Illuminating Our Biggest Possibilities and Challenges at 150 Years, edited by P. Tortell and
M. Young (Vancouver, BC: Peter Wall Institute for Advanced Studies—UBC Press, 2017).
1 INTRODUCTION 9
III.
[Inhoud]
ZESDE HOOFDSTUK.
—Binne ’t loate?