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Articles

Neither adapting nor innovating: the limited transformation of Canadian foreign trade policy since 1984

 

ABSTRACT

Canada failed to respond with innovative solutions to shifting international economic pressures emerging in the 1970s. Canadian trade policy embraced offensive solutions in areas of comparative advantage but not in sectors with high political and economic costs, thereby limiting opportunities to join emerging supply chains outside of North America and hampering goals of reducing reliance on the American market. International trade disputes resulting from these policies also restricted innovation, as did the structures of Canadian federalism, Canada’s regional political economy, the country’s industrial policy and internal trade regimes, limits on bureaucratic capacity, and pressures from non-governmental interests. Where innovation did exist, it occurred incrementally and asymmetrically across sectors, while usually prioritizing offensive economic interests.

RÉSUMÉ

Le Canada n’a pas réussi à répondre, avec des solutions innovantes, aux pressions résultant des changements de l’économie internationale s’étant produits dans les années 70. La politique commerciale du Canada a adopté des solutions offensives dans des domaines d’avantage comparatif, mais pas dans les secteurs ayant un coût politique et économique élevé, limitant ainsi les opportunités de s’associer aux chaînes logistiques en-dehors de l’Amérique du Nord, et entravant les objectifs de réduction de la dépendance vis-à-vis du marché américain. Les différends commerciaux internationaux résultant de ces politiques ont également restreint l’innovation, à l’instar des structures du fédéralisme canadien, de l’économie politique régionale du Canada, de la politique industrielle du pays et des régimes de commerce intérieur, des limites des capacités bureaucratiques et des pressions des intérêts non gouvernementaux. Quand l’innovation a existé, elle est apparue progressivement et asymétriquement d’un secteur à l’autre, tout en privilégiant, d’une manière générale, les intérêts économiques offensifs.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes on contributor

Christopher J. Kukucha is a professor in the Department of Political Science at the University of Lethbridge. He is the author of The Provinces and Canadian Foreign Trade Policy and a co-editor of several books including The Harper Era in Canadian Foreign Policy (Adam Chapnick), International Political Economy (Greg Anderson), and the third edition of Readings in Canadian Foreign Policy (Duane Bratt). Chris also served as the William J. Fulbright Research Chair in Canadian Studies at the State University of New York (Plattsburgh) and is a past President of the International Studies Association of Canada.

Notes

* The author is grateful to Laurette Glasgow for her comments on an earlier draft of this manuscript.

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