Restructuring the Economy: Canada into the Free Trade Era

  • Bruce Campbell


Four years after the Canada-U.S. Free Trade Agreement (CUFTA) was implemented (on 1 January 1989), supporters and critics in Canada remained as divided in their assessments of its impact as they had been in their forecasts before the deal was signed. Critics saw the early years of implementation bearing out their predictions of severe adverse economic, social, and political consequences flowing directly and indirectly from the free trade agreement. Free trade defenders responded to the Canadian economic crisis in the early 1990s in a variety of ways. Some said it was still too early to judge CUFTA’s impact and blamed worldwide recession, the overvalued dollar, and globalization. Others pointed to what they saw as positive signs regarding Canada’s trade and foreign investment balances—signs that showed that free trade was working. Few acknowledged that the situation was the anticipated, if painful, consequence of a policy agenda (of which CUFTA was central) whose objective was to transform the Canadian economy.


Free Trade Unemployment Insurance Free Trade Agreement North American Free Trade Agreement Compulsory License 
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Copyright information

© Ricardo Grinspun and Maxwell A. Cameron 1993

Authors and Affiliations

  • Bruce Campbell

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