POLI 243 notes March 12

POLI 243 notes March 12 - March 12, 2009 International...

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March 12, 2009 International Politics of Econ Relations Canada Pursues Free Trade with the U.S. *look for change in the independent variables, and see how they affect the dependent variables - remember we have a midterm on Thursday The Systemic Environment in the 1980s - Trade is a priority (for Canada) o Canada relies heavily on trade and thus it is very important - Post WWII: GATT (General Agreement on Tariffs and Trade) and the Auto Pact o In 1913 the Americans liberalize trade using GATT (doesn’t take effect until 1950s) Woodrow Wilson enters office in 1912 (individual level – think about his personality and childhood: made him stubborn, wouldn’t compromise… etc) based on liberalizing trade; negotiate GATT (developed countries liberalized trade agreement) Exceptions: GATT did not liberalize all trade – agriculture was not part of the agreement (they were too strong in agriculture compared to Europe, and they didn’t want to mess up the European economies) Auto Pact – liberalized trade in automobile parts in order to better integrate production between the two countries - Lengthy negotiations in GATT in the 1970s o States started passing regulations that limited the output of products E.g. law that everyone needed seatbelts (this means they need to make more seatbelts) E.g. environmental protection rules (must use certain sort of gas) o These rules are used to exclude imported products and block trade from other countries (since they don’t have the same laws for their products and then they are blocked from being used in the country with the laws) It was difficult to figure out what was a trade barrier and what wasn’t – what laws block trade and which are legitimate? This needed to be figured out in order to save GATT
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POLI 243 notes March 12 - March 12, 2009 International...

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