8.viii.05 Course Syllabus: Please bring hard copy to each lecture
USA 401 H-F Fall Term, 2005
THE CANADIAN – AMERICAN RELATIONSHIP
...... NAFTA and the Political Economy of the Post-National State ......
Lectures: Mondays 10 a.m.- noon in Sidney Smith 1088 Instructor: Professor Stephen Clarkson Office: Sidney Smith 3121 Office Hours: by appointment on Mondays between 12.15 and 5 p.m. Telephone: Office - (416) ___-____ (leave a message if I’m out) Home - (416) 925-7596 (early evenings only; leave a message if I’m out) Fax: Office - (416) 978-5566 Web site: www.chass.utoronto.ca~clarkson Teaching Assistant: Jim Farney [email protected]
OBJECTIVES
The implementation of the Canada-United States Free Trade Agreement (CUFTA) on January 1, 1989 marked a watershed in Canada's relationship with the United States. In the eyes of the Agreement's opponents and proponents alike, CUFTA's ratification by the Mulroney government would transform the Canadian economy. Critics believed that "free trade" (expanded in January 1994 to include Mexico via NAFTA would seriously undermine Canada's fragmented political system and already vulnerable culture. Advocates maintained that these dangers were negligible and that there was no alternative given the regional integration happening in Europe (EU) and South America (Mercosur). Besides, NAFTA’s rules were consistent with the obligations Canada assumed by joining the World Trade Organization in 1995 This course will apply to the Canadian-American relationship the theoretical issues and policy problems central to globalization’s effects on sovereign states and cultures. As "political economy," this course rejects the conventional boundaries that isolate political science from economics. According to this perspective, Canada's position in the world cannot be studied just as a question of politics or of economics. Our intellectual challenge in studying Canada's global challenge in North America is to master analytical frameworks that give us a sophisticated understanding of the multi-dimensional dynamics of Canadian development. This subject matter is prone to highly ideological treatment, for it touches one of the most sensitive of Canadian nerves. Nevertheless, our objective will be to deal fairly, factually, and rigorously with the assumptions, theories, and arguments used in the debate between nationalists (who believe that Canada suffers from and should resist its economic, political, and cultural domination by the United States) and continentalists (who believe that Canada should optimistically embrace the forces of integration that it has opposed for too long and in vain.)
Note: Students may not take this course and its companion, Pol. 341 H-F, in the same term. USA 401 H-F, fall 2005 1 PEDAGOGICAL APPROACH
1. Lectures Central to the course are its weekly lectures. They will discuss the basic theoretical issues raised by the literature about Canada's position in North America, give the historical background and analytical context, and examine the implications of continentalism for Canada's economy, polity and culture. Regular attendance is expected and will be rewarded; an attendance record is kept. The reading log and each student’s lecture notes may be submitted for appraisal at the Christmas exam for a possible bonus of up to 2 per cent. Short readings are specified for each lecture in this syllabus. To get the most out of the lectures, students should read these passages beforehand. For those participating in discussion groups, it is mandatory to read this material in advance. Periodically, special guests will apply their expertise to the specific topic under discussion.
2. Tests A final examination worth 25 per cent will be held in the UC East Hall. Test questions will be based on the weekly readings and the material covered during the lectures. The questions will be distributed in advance at the last lecture, and the exam will be held one week later.
3. Office Hours I want to meet each member of the course during my office hours early in the term. Please drop by for a brief chat bringing a small photograph I can attach to your file.
4. Essays Because "we write to learn," essay writing is the principal focus for your individual work. In order to generate a common vocabulary for the course, every student will do a book review by Lecture 4. An outline for the major essay must then be submitted for approval by Lecture 6.
5. Learning Options Three options offer you a range of learning experiences from which to choose.
Option A. All Written Work This involves solo study. The book report, outline, and essay entirely determine the term mark: book review (1,500 words or 6 pages) worth 15 percent essay outline (3 pages) worth 20 percent essay (3,500 words or 14 pages) worth 40 percent
Option B. Written Work plus Weekly Discussion Group In addition to the written work of Option A this option involves participation in a weekly, student-run discussion group that allows time for debating the issues raised during the lectures, self-help in essay, and test preparation, plus getting to know a small number of fellow students. Once this option is chosen (and approved by me), regular attendance at tutorials is mandatory. USA 401 H-F, fall 2005 2 Weekly reports are submitted to me evaluating your participation in each session and alerting me to problems that may need resolving. Participation accounts for 10 per cent, with the book review and essay each worth 5 per cent less than in Option A.
Option C. Morph Pol. 318 into a year-long, Research Opportunity Course, Pol. 397Y This involves doing the book review and attending the lectures for Pol. 318 but doing the rest of the work as part of a research collective contributing to work I am finishing on the governance of North America. Each member of the group will research a specific issue within the area I am investigating. In the first term, the paper will review the relevant literature and pose the research questions and methodological issues to be addressed in the second term’s original research. The group will meet occasionally to discuss research problems, but students will mainly interact directly with me throughout the academic year – and probably beyond. As climax of the research – thanks to generous financial support from the Dean of the Faculty of Arts – the top six students will spend one week at the end of the winter term in Washington being briefed by some experts and interviewing other officials to obtain first-hand information on their subject. The standard comparative book review (10 percent), a project outline (10 percent) and the background paper worth (30 percent) are due in the first term. The remaining 50 percent of the mark consists of the final 6,000 word, 24-page essay. Prerequisite: students electing this option must have reached an A level in their previous essays and a GPA of 3.75. To proceed further they must produce an A for the book review.
Summary of Marking Coefficients for Options A, B, and C
OPTION A B C
First term book review 15 10 10 outline 20 15 10 essay 40 40 30 discussion group 10
Term work 75 75 50
Christmas test 25 25
Second term 50
Final mark 100 100 100
USA 401 H-F, fall 2005 3 SCHEDULE, DEADLINES, and PENALTIES for TERM WORK and EXAMINATION
Options A and B:
Book review: L 4, October 3 returned with comments L6, October 17 Outline:** L 6, October 17 returned with comments L7, October 24 Essay: L10, November 14 returned with comments L12, November 28
Final exam: L12, November 28 Questions distributed December 5 Test held in UC East Hall 10 to 11.55 a.m.
All assignments are due on the specified date by 10:10 a.m. that is, before the lecture begins, when the TA will pick them up. The penalty clock for lateness will start at that time.
LATE Assignments are to be handed in to Sidney Smith 3018
* Penalties for lateness: Book reviews: 5 percent per day, to a maximum of 25 per cent. Outlines: 5 percent per day, to a maximum of 25 per cent. Essays: 2 percent per day, to a maximum of 20 per cent.
Extensions may be granted for incapacitating medical problems notified before the deadline and documented subsequently by a doctor. Extensions are not granted for computer failure or other work commitments.
** See page 10 for what is required in an outline.
Option C (Pol 397Y):
Book review: L4, October 3 returned with comments L 6, October 17 Project outline: (+) L6, October 17 returned with comments by appointment Background paper December 5 returned with comments December 12 Final research report May 1, 2004
USA 401 H-F, fall 2005 4 LECTURE SCHEDULE and WEEKLY READINGS
Those readings for each lecture that do not come out of the required texts and are not available on line are compiled in a xeroxed compendium available from Alico’s Copy Centre, 203-A College Street, 599-2342.
L. 1 Introduction: Continentalism ’n’ Us Sept. 12
A systematic explanation of my pedagogy -- options, essays, bibliographies, outlines, weightings, deadlines, penalties, tests and such other necessary evils as lecture topics and weekly readings -- will introduce you to the course’s ends and means.
Read: Nothing required: it’s your time for getting over any qualms before the storm.
PART I -The DEBATE over CANADA'S ECONOMIC (MIS)DEVELOPMENT
L. 2 The Battle of the Paradigms: (1) Innis's Political Economy and Its Critics Sept. 19
In intellectual opposition to the school of neo-classical economics, the `political economy' interpretation of Canada's international position traces its roots back to the magisterial, technology-focused work of Harold Innis. A less determinist generation of younger political economists challenged the Innisian theory while still rejecting neo-classical economics.
Read: - Daniel Drache, “Introduction,” in Harold A. Innis, Staples, Markets, and Cultural Change (Montreal: McGill-Queen’s, 1995), xiii-liii. - Hart, A Trading Nation, ch.3.
11.45: Jim Farney will discuss the book review assignment
L. 3 The Hegemon and the Client State: Conflicting Trajectories? September 26
The United States’ historic strategy towards Canada. The tightening of US protectionism using non-tariff barriers was seen in the early 1980s as a severe threat to Canada’s economic prospects. The Canadian government's objective of (i) "secure access" and (ii) "enhanced access" to the U.S. market via exemption from U.S. protectionism, a binding dispute settlement, and a definition of subsidies was derived from the Macdonald Commission's recommendations.
USA 401 H-F, fall 2005 5 Read: - Clarkson, Uncle Sam and Us, chs. 2, 3. - William K. Carroll and Murray Shaw. “Consolidating a Neoliberal Policy Bloc in Canada, 1976 to 1996,” Canadian Public Policy 27:2, June 2001. pp. 195-217 Online Journal - G. Stewart, "`A Special Contiguous Country Economic Regime': America's Canadian Policy," Diplomatic History (Fall,1982), 339-57.
L. 4 NAFTA, Mexico, and the FTAA’s Significance for Canada Oct. 3
Jim Farney will collect the book review due at 10.10 a.m. and discuss essay outline assignment.
Besides deepening CUFTA by increasing its disciplines in several chapters, NAFTA broadened the agreement by including Third-World Mexico within its membership.
Read: - Cameron MA, Wise C. “The Political Impact of NAFTA on Mexico: Reflections on the Political Economy of Democratization.” Canadian Journal of Political Science. 37 (2) 301-323 June 2004. Online Journal
PART II The CANADIAN STATE under TRADE LIBERALIZATION
L. 5 Thanksgiving: No class Bon appétit! Oct. 10
L. 6 The Battle of the Paradigms: (2) Transnational Corporations Oct. 17 Essay outlines to be handed in
Political economy applied the microeconomic theory of the firm to the macroeconomic question of foreign investment producing significant breakthroughs in understanding the nature of foreign direct investment in Canada. The Watkins Report (1968), the Wahn Report (1970), and the Gray Report (1972) received a cool response from mainstream economists but resulted in the CDC (Canada Development Corporation), FIRA (Foreign Investment Review Agency) and the NEP (National Energy Program) – all efforts to reduce the deemed negative effects of US transnational corporations.
Read: - Clarkson, Uncle Sam and Us, ch. 12. - Litvak and Maule, in Fox, Hero, and Nye, eds., Canada and the United States, 119-39.
11.50 Book reviews returned.
USA 401 H-F, fall 2005 6 L. 7 The Canada-United States and the North American Free Trade Agreements Oct. 24
The 1987-8 debate over the virtues and vices of CUFTA was long and protracted. The signing of NAFTA in 1993 revived it all over again. Mainstream economists had a completely different approach from political scientists and political economists.
Read: - Clarkson, Uncle Sam and Us, chs. 4 and 11.
11.50 Essay outlines returned.
L. 8 Dispute Settlement under NAFTA: Softwood Lumber and Chapter 11 Oct. 31
Proponents of free trade cited CUFTA’s dispute settlement mechanism as the way to get politics out of the Canadian-American trade relationship. We need to consider this claim in the light of over a decade’s experience.
Read: - Robert Howse, “Settling Trade Remedy Disputes: When the WTO Forum Is Better than the NAFTA,” C.D. Howe Institute Commentary 111 (June 1998). Website - Gustavo Vega C. and Gilbert R. Winham, “The Role of NAFTA Dispute Settlement in the Management of Canadian, Mexican, and U.S. Trade and Investment Relations,” Ohio Northern University Law Review XXVIII:3 (2002), 651-706. Online Journal
11.50 Essay outlines returned.
L. 9 Industrial Policy under Trade Liberalization Nov. 7
What does granting "national treatment" mean for industrial policy making capacity at the federal and provincial levels of government in Canada? Does the steel industry provide lessons for how the domestic economy can grow within North America under conditions of globalizing markets?
Read: - Clarkson, Uncle Sam and Us, chs.13, 14. - Peter Morici, “Resolving the North American Subsidies War,” Canadian-American Public Policy 27, September 1996, 1-34. Online Journal. - Peter Warrian, “The Tipping Point Between Stelco & Dofasco.” Available on my website.
L. 10 The Economic Impact of Trade Liberalization: Trade and Investment Nov. 14
10.10 Essays due USA 401 H-F, fall 2005 7
The two opposing positions on free trade have understandably generated opposing interpretations of the broad economic impact of commercial and investment liberalization. We have to learn to be sceptical about all analyses because of the problem of generating the requisite data.
Read: - Clarkson, Uncle Sam and Us, ch.11. - Daniel Schwanen, “Trade Liberalization and Inequality in Canada during the 1990s,” The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, 2001, vol. 1. updated version accessible at http://econpapers.repec.org/bookchap/slsrepsls/v_3A1_3Ay_3A2001_3Ads.htm
L. 11 The Environment and NAFTA’s Chapter 11 Nov. 21
The environment was formally excluded from the FTA and formally included in NAFTA. In both cases, environmentalists are divided about the expected impact of the free-trade philosophy, harmonization of standards, and the extension of intellectual property rights to forms of plant and animal life. American transnational corporations’ use of NAFTA’s unprecedented “investor- state” dispute settlement mechanism has empowered foreign investors to overturn federal, provincial, and municipal environmental measures and, in the process, has deeply alarmed those who are particularly concerned about the commodification of the country’s water supply.
Read: - Clarkson, Uncle Sam and Us, ch. 17. - Anita Krajnc, “Wither Ontario’s Environment? Neo-Conservatism and the Decline of the Environment Ministry,” Canadian Public Policy, 26:1 (2000), 111-27. Online Journal - International Institute for Sustainable Development, Private Rights, Public Problems: A Guide to NAFTA’s Controversial Chapter on Investor Rights (Winnipeg: IISD, 2001), 1-53. Online at http://www.iisd.org/publications/pub.aspx?pno=270 -Patricia Marchak, “Environment and Resource Protection: Does NAFTA Make a difference?” Organization & Environment 11:2 (June 1998), 133-54. Online Journal
L. 12 The Border as Trade Facilitator or Security Barrier? Nov. 28 - Stephen Clarkson and Maria Banda, “Paradigm Shift or Paradigm Twist? The Impact of the Bush Doctrine on Canada.” On my web site.
Final Examination University College East Hall 10 – 11.55 a.m. Dec. 5
USA 401 H-F, fall 2005 8 REQUIRED BOOKS
Stephen Clarkson, Uncle Sam and Us: Globalization, Neoconservatism, and the Canadian State (University of Toronto Press and Woodrow Wilson Press, 2002).
Michael Hart, A Trading Nation: Canadian Trade Policy from Colonialism to Globalization (Vancouver: UBC Press, 2002).
RECOMMENDED EDITED BOOKS
The following older volumes have many useful chapters on specific problems which should prove helpful in initiating your essay research. Consult their table of contents.
Cameron, Duncan, ed. The Free Trade Deal. Toronto: James Lorimer & Co., 1988. [HF 1766 F73 1988 ROBA/VIC]
Cameron, Duncan and Mel Watkins, eds. Canada Under Free Trade. Toronto: James Lorimer & Co., 1993. [ F 5047 C2939 1993 ROBA] *CaMel in the lecture readings.
Clement, Wallace, ed. Understanding Canada: Building on the New Canadian Political Economy. Montreal; Kingston: McGill-Queens University Press, 1997. [HC 115 U52 1997 ROBA]
Crispo, John, ed. Free Trade: The Real Story. Canada: Gage Educational Publishing Co., 1988. [HF 1766 F74 1988 ROBA/TRIN]
Drache, Daniel and Meric S. Gertler, eds. The New Era of Global Competition: State Policy and Market Power. Montreal; Kingston: McGill-Queens University Press, 1991. [HC 115 N393 1991 ROBA]
Globerman, Steven and Michael Walker, eds., Assessing NAFTA: A Trinational Analysis. Vancouver: Fraser, 1993. [HF 1766 A85 1993 ROBA] *Globe&Walk in the lecture readings.
Gold, Marc and David Leyton-Brown, eds. Trade-Offs on Free Trade. Toronto: Carswell, 1988. [HF 1766 T73 1988 TRIN/LAW]
Grinspun, Ricardo and Maxwell A. Cameron, eds. The Political Economy of North American Free Trade. New York: St. Martins Press, 1993. [HF 1746 P65 1993 ROBA] *GrinsCam in the lecture readings.
OECD. Regionalism and It’s Place in the Multilateral Trading System. Paris: OECD, 1996. [ZZ...ED...20B-1996 R26 NONCIRC ROBA]
USA 401 H-F, fall 2005 9 Randall, Stephen J., Herman Konrad and Sheldon Silverman, eds. North America Without Borders? Calgary: University of Calgary Press, 1992. [HF 1766 N67 1992 UC/SIGS]
Randall, Stephen J. and Herman W. Konrad, eds. NAFTA in Transition. Calgary: University of Calgary Press, 1995. [HF 1746 N345 1995 ROBA/SIGS] *RanKon in the lecture readings.
Stubbs, R. and Geoffrey R. D. Underhill, eds. Political Economy and the Changing Global Order. London: Macmillan, 1994. [HF 1411 P591154 1994 ROBA]
Williams, Glen. Not for Export (Toronto: McClelland and Stewart, 3rd ed., 1994).
*Please note that these publications will be referred to by the last name of the (first) editor and the year of publication in the essay topics which follow.
ESSAYS and OUTLINES
Your book review and essay will be read carefully. Comments on language and logic will be noted in the margins. More general responses to the overall strengths and weaknesses of each essay will be written on a separate page, a copy of which will be kept as part of your file to help in the writing of references if needed in the future.
Essays will be judged by the following criteria:
1. Argument 25% The originality and the power of the analysis you present; the extent that a theory from the political economy literature is tested or some interesting hypothesis of your own is proven; the coherence of the logic with which you develop your case. Students’ most common problem comes from not finding a clear question to address and so not developing an effective thesis.
2. Information 25% The mastery of the factual material that you present from your research in the literature, its relevance to your argument, its effectiveness in making your case, its accuracy and completeness. Students’ most common problem comes from not knowing what material to consult and so not marshalling information that is relevant to demonstrating the thesis.
3. Structure 25% The coherence of your paper's organization and its utility in helping develop your argument. Students’ most common problem comes from not developing an organization of this material that serves the argument's development.
4. Writing and Editing 25% USA 401 H-F, fall 2005 10 The clarity with which you express your ideas and communicate your thinking, correct usage of English (or French) syntax and language, integrity of paragraphs, narrative continuity. Editing includes the care with which you present the essay: correct spelling, proper presentation of (preferably) footnotes and bibliography. Students’ most common problem comes from not writing a first draft early enough so that unclear points can be clarified, the introduction and conclusion reformulated, the argument perfected, and the text carefully edited for annoying typographical errors.
Everyone suffers from insufficient time to plan, research, think and write well. Remedy: start early.
OUTLINE
To help you address these problems more efficiently in the limited time you have available, you are asked to produce a three-page outline of your major paper at an early stage of its development. You should spend a couple of weeks doing some general research -- reading your own texts and looking through the books and articles from the course bibliography that appear most relevant to the subject that interests you. You should then produce an outline using the following format:
Page 1. A few paragraphs explaining what question you want to answer, what theory you hope to explore, and the general argument you want to develop.
Page 2. Your proposed point-form structure in the form of a mini-table of contents.
Page 3. A bibliography of the dozen or so main sources you expect to consult.
ESSAY ASSIGNMENTS
1. Book Review 6 pages (1,500 words) In A Trading Nation, Michael Hart states “Underlying most decisions to discriminate – whether domestically or internationally – is skepticism about the efficacy of markets and the price mechanism on the one hand, and faith in the beneficial effect of government regulation and controls on the other. Most of those decisions, however, are not based on economic concepts and analysis but on non-economic instincts and biases.” (7) Does Hart’s analysis of Canadian trade policy support this position? Take care to evaluate the logic, information, and structure of Hart’s argument, rather than just articulating how or why you agree or disagree with his conclusion. As a minimum, base your analysis on chapters 1, 3, 10, 12, 13, 15, and 16. These chapters are available in a photocopied kit at Alico’s Copy Shop.
USA 401 H-F, fall 2005 11 2. Suggested Essay Topics 14 pages (3,500 words)
Students should feel free to suggest alternative essay topics or amend the ones listed below in consultation with Jim Farney or myself. A short list of suggested sources has been provided as a place to begin – not end – your research. In topics that address a general issue of North American governance, your essay should focus specifically on aspects that specifically address the Canadian-American relationship.
1. Assess the capacity of staples theory to explain how Canada came to trade liberalization. -Bothwell, Robert. “More than Kin, Less than Kind,” in Randall, 1992. -Drache, Daniel,”Introduction,” in Harold A. Innis, Staples, Markets, and Cultural Change (Montreal: McGill-Queens, 1995), .xiii-liii. -Lipsey, Richard. “The Free Trade in Context,” in Gold, 1988. -Phillips, Paul. “New Staples and Mega-Projects: Reaching the Limits to Sustainable Development,” in Drache, 1991. -Surich, Jo. “Throwing in the Towel,” in Gold, 1988. -Watkins, Mel. “An Alternative Trade and Development Model for Canada,” in Grinspun, 1993.
2. How does Canada's political position in North America compare with that of any of the smaller European states (Ireland, Holland, Spain) in the European Community? - Eden, Lorraine and Maureen Appel Molot. “The View from the Spokes,” in Randall, 1992. - Hiemenz, Ulrich. “European Economic Integration,” in OECD, 1996. - McKinney, Joseph. “Lessons from the Western European Experience for North American Integration,” in Randall, 1992. -Smiley, Donald. “A Note on Canadian-American Free Trade and Canadian Policy Autonomy,” in Gold, 1988. -Young, Robert A. “The Canada-U.S Agreement and Its International Context,” in Gold,1988.
3. If the strengthening of continentalism deepens the forces of regionalism in Canada, what impact will the free trade agreements have on Canadian federalism? - Clark, Mel. “Canadian State Powers,” in Cameron, 1993. - Fairley, H. Scott. “Jurisdictional Limits on National Purpose,” in Gold, 1988. - Gibson, Dale. “The Free Trade Agreement and the Provinces,” in Gold, 1988. - Petter, Andrew. “Free Trade and the Provinces,” in Gold, 1988. - Sinclair, Scott. “Provincial Powers,” in Cameron, 1993. - Stevenson, Garth. “The Agreement and the Dynamics of Canadian Federalism,” in Gold, 1988.
4. Can political sovereignty for Canada be reconciled with the continental economic integration that trade liberalization is designed to encourage? - Appel Molot, Maureen. “The Canadian State in the International Economy,” in Stubbs, USA 401 H-F, fall 2005 12 1994. - Clarkson, Stephen. “The Canada-U.S Trade Commission: The Political Implications of CUSTER,” in Gold, 1988. - Coyne, Deborah. “Undermining Canada’s Constitution,” in Cameron, 1988. - Migue, Jean-Luc. “True Independence Through Free Trade,” in Gold, 1988. - Smiley, Donald. “A Note on Canadian-American Free Trade and Canadian Policy Autonomy,” in Gold, 1988.
5. What effect did the free trade debate have on the alignment of nationalist versus continentalist forces in Canada over the past two decades? Develop your analysis with reference to one or more such groups as unions, women's groups, the voluntary sector, business organizations and political parties. - Ayres, Jeffrey M., Defying Conventional Wisdom: Political Movements and Popular Contention against North American Free Trade (Toronto: University of Toronto Press, 1998). - Clarkson, Stephen. “Disjunctions: Free Trade and the Paradox of Canadian Development.” in Drache, 1991. - Dasko, Donna. “The Canadian Public and Free Trade,” in Cameron, 1988. - Drache, Daniel. “The Mulroney-Reagan Accord,” in Gold, 1988. - Kreklewich, Robert. “North American Integration and Industrial Relations,” in Grinspun, 1993. - Langille, David. “The Business Council on National Issues and the Canadian State,” Studies in Political Economy, v.24, Autumn 1987, pp. 41-85. - Martin, Richard. “Canadian-Labour and North American Integration,” in Randall, 1992. - Rugman, Alan M. “Multinationals and the FTA,” in Gold, 1988. - Rugman, Alan M. Multinationals and the Canada-U.S Free Trade. University of South Carolina Press, 1990. - Wonnacott, Ronald J. “Labour and Canada-U.S Free Trade,” in Gold, 1988.
6. Having once been the instruments for entrenching the Americanization of Canadian labour, why have trade unions become vehicles for resisting Americanization in the last two decades? - Herzenberg, Stephen. “Calling Maggie’s Bluff: The NAFTA Labor Agreement and the Development of an Alternative to Neoliberalism,” Canadian-American Public Policy, no. 26, December 1996. - Jackson, Andrew. “Manufacturing,” in Cameron, 1993. - Mahon, Rianne. “Post-Fordism: Some Issues for Labour,” in Drache, 1991. - Martin, Andrew. “Labour, the Keynesian Welfare State, and the Changing International Political Economy,” in Stubbs, 1994. - Martin, Richard. “Canadian Labour and North American Integration,” in Randall, 1992. - Phillips, Paul. “Labour in the New Canadian Political Economy,” in Clement, 1997. - Stanford, James. “Continental Economic Integration: Modeling the Impact on Labor,” ANNALS, AAPSS, v.526, March 1993, 92-110. - Tester, Frank J. “Canada and the Global Crisis in Resource Development,” in Gertler, USA 401 H-F, fall 2005 13 1991. - Wakefield, T.A. “The Canadian-U.S Free Trade agreement and the Canadian Auto Industry,” in Gold, 1988. - Wonnacott, R.J. “Labour and Canada-U.S Free Trade,” in Gold, 1988.
7. In what ways does NAFTA compare with the European Union as a continental trade bloc? - Brunelle, Dorval and Christian Deblock. “Economic Blocs and the Challenge of the North American Free Trade Agreement,” in Randall, 1992. - Clarkson, Stephen, “Fearful Assymetries: The Challenge of Analyzing Continental Systems in a Globalizing World,” Canadian-American Public Policy, 35 (September 1998) 66 pages. - Levy, Brigitte. “The EU and NAFTA: Two Regional Economic Blocs in a Complex and Interdependent International Economy,” Revue d’Intégration européene, v.17, no.2-3, 1994. - McKinney, Joseph. “Lessons from the Western European Experience for North American Integration,” in Randall, 1992. - Milner, Helen. “Regional Economic Co-operation, Global Markets and Domestic Politics: A Comparison of NAFTA and the Maastricht Treaty,” Journal of European Public Policy, 2:3 September 1995. - Wilkinson, Bruce. “Regional Trading Blocs: Fortress Europe versus Fortress North America,” in Drache, 1991.
8. Compare the arguments for a free trade agreement put forward by supporters and opponents in Canada, or develop a critical analysis of one of the two camp’s logic. - See all the major collections on free trade.
9. How has free trade affected the historic Canadian debate about foreign direct investment? - Blank, Stephen, Stephen Krajewski and Henry S. Yu. “U.S Firms in North America: Redefining Structure and Strategy,” North American Outlook 5:2 Feb. 1995: 9-23, 60-74. - Langille, David. “The Business Council on National Issues and the Canadian State,” Studies in Political Economy, v. 24, Autumn 1987, 41-85. - Litvak and Maule, in Fox, Hero, and Nye, eds., Canada and the United States,.119-139. - Safarian, A.E. “Foreign Direct Investment,” in Crispo, 1988. - Stanford, Jim. “Investment,” in Cameron, 1993. - Watkins, Mel. “Investment,” in Cameron, 1988.
10. How has free trade affected Canadian-owned capital? -Blank, Stephen, Stephen Krajewski and Henry S. Yu. “U.S Firms in North America: Redefining Structure and Strategy,” North American Outlook 5:2, Feb. 1995: 9-23, 60-74. -Cameron, Duncan and Hugh Mackenzie. “Manufacturing,” in Cameron, 1988. -Langille, David. “The Business Council on National Issues and the Canadian State,” Studies USA 401 H-F, fall 2005 14 in Political Economy, 24, Autumn 1987, 41-85. -Clement, Wallace and Glen Williams. “Resources and Manufacturing in Canada’s Political Economy,” in Clement, 1997. -Jackson, Andrew. “Manufacturing,” in Cameron, 1993. -Saunders, J. Owen, “The Canadian Resource Sector: Some Implications of the Free Trade Agreement,” in Gold, 1988.
11. Did free trade protect Canada from U.S protectionism? -Davey, William J. “Dispute Settlement Under the Canada-U.S Free Trade Agreement,” in Gold, 1988. -Davey, William J. Pine and Swine: Canada-United States trade dispute settlement: The FTA experience and NAFTA prospects. Ottawa: The Centre for Trade Policy and Law, 1996. -Doran, Charles. “Trade Dispute Resolution ‘On Trial’: Softwood Lumber.” International Journal 51:.4 Autumn 1996: 710-733. -Percy, Michael and Christian Yeder. The Softwood Lumber Dispute and Canadian-U.S Trade in Natural Resources. Halifax: Institute for Research on Public Policy, 1987. -Rugman, Alan M. And Andrew Anderson. “A Fishy Business,” Canadian Public Policy, 8:2 June 1987, 152-164. -Steger, Debra P. “Dispute Settlement,” in Gold, 1988. -Winham, Gilbert R. “Dispute Settlement and the Question of Subsidies,” in Gold, 1988. -Winham, Gilbert R. “Dispute Settlement in NAFTA and FTA,” in Globerman, 1993.
12. Has free trade transformed the Canadian-American relationship? - American Review of Canadian Studies 2:2 Summer 1997. -Clarkson, Stephen. Canada and the Reagan Challenge: Crisis and Adjustment in the Canadian-American Relationship 1981-85. Toronto: Lorimer, 2nd ed., 1985. -Clarkson, Stephen. “Constitutionalizing the Canadian-American Relationship,” in Cameron, 1993. -Eden, Lorraine and Maureen Appel Molot. “The View from the Spokes,” in Randall, 1992.
13. Compare Mexico’s with Canada’s rationale for negotiating free trade. -Arregui, Edur Velasco. “Industrial Restructuring in Mexico During the 1980's,” in Grinspun, 1993. -Helman, Judith Adler. “Mexican Perceptions of Free Trade: Support and Opposition to NAFTA,” in Grinspun, 1993. -Legler, Tom. “Economic Crisis and Political Change in Mexico,” Canadian Foreign Policy 4:3, 1996, 21-35. -Ramirez De la O, Rogelio. “The North American Free Trade Agreement from a Mexican Perspective,” in Globerman, 1993. -Teichman, Judith. “Neoliberalism and the Transformation of Mexican Authoritarianism,” Mexican Studies 13:1 Winter 1997. USA 401 H-F, fall 2005 15 - Maxwell Cameron and Brian Tolmin, book on the negotiation of NAFTA.
14. Are the ecological objectives of the "policy harmonization" that is meant to result from NAFTA’s environment commission contradicted by the policy implications of Chapter 11's investor-state dispute process? -American Review of Canadian Studies, Summer 1996. - Audley, John J., Green Politics and Global Trade: NAFTA and the Future of Environmental Politcs (Washington, D.C.: Georgetown University Press, 1997). -Baker-Fox, Annette. “Observing the Rules : Canada-U.S Trade and Environmental Relations,” Canadian-American Public Policy, no.31, November 1997. -Beaulieu, Andre and Pierre-Marc Johnson. “NAFTA/NAAEC and the Environmental Agenda of Trade,” The Environment and NAFTA. Washington: Island Press, 1996. -Canadian Environmental Law Association at 517 College St., Suite 401, 416-960-2284. -Condon, Bradly J. “The Impact of the NAFTA, the NAAEC, and Constitutional Law on Environmental Policy in Canada and Mexico,” in Randall, 1995. -Globerman, Steven. “Trade Liberalization and the Environment,” in Globerman, 1993. -International Institute for Sustainable Development, Private Rights, Public Problems: A Guide to NAFTA’s Controversial Chapter on Investor Rights (Winnipeg: IISD, 2001),. -Kirton, John. “The Commission for Environmental Cooperation and Canada-U.S Environmental Governance in the NAFTA Era,” American Review of Canadian Studies 27:3 Autumn 1997. -Mumme, Stephen P. “Environmental Management on the Mexico-United States Border: NAFTA and the Emerging Bilateral Regime,” American Review of Canadian Studies 26:2 Summer 1996. -Shrybman, Steven. “Trading Away the Environment,” in Grinspun, 1993. -Swenarchuk, Michelle. “Environment,” in Cameron, 1993. -Tester, Frank James. “Free Trading the Environment,” in Cameron, 1988. -Thompson, Dixon. “Environmental Implications of North American Free Trade,” in Randall, 1992.
15. Evaluate the short- and long-term implications for Canada's political economy (including the impact on the federal and provincial governments' economic policy- making) of the provisions in NAFTA dealing with one of:
(a) banking - Campbell, Bruce. “Financial Services,” in Cameron, 1993. - Chant, John F. “The Financial Sector in NAFTA: Two Plus One Equals Restructuring,” in Globerman, 1993. - Falconer, Kirk. “The Trade Pact, Deregulation and Canada’s Financial System,” in Cameron, 1993. - Grover, Warren. “The Free Trade Agreement and Financial Services,” in Gold, 1988.
USA 401 H-F, fall 2005 16 (b) energy - Blue, Ian A. “Implications of the Free Trade for Canadian Electricity Exports,” in Gold, 1988. - Carmichael, Edward A. “Energy,” in Crispo, 1988. - Dillon, John. “Continental Energy Policy,” in Cameron, 1988. - Watkins, G.C. “NAFTA and Energy: A Bridge Not Far Enough?” in Globerman, 1993.
(c) the automobile industry - Eden, Lorraine and Maureen Appel Molot. “Continentalizing the North American Auto Industry,” in Grinspun, 1993. - Gindin, Sam. “The Auto Sector,” in Cameron, 1993. - Mackenzie, Hugh. “Free Trade and the Auto Industry,” in Gold, 1988. - Wakefield, T. A. “The Canada-U.S Free Trade Agreement and the Canadian Auto Industry: Doing the Right Thing at the Right Time,” in Gold, 1988.
(c) Another issue subject to approval
16. Is the Auto Pact a valid model for anticipating what NAFTA's impact will be in other industries? -Eden, Lorraine and Maureen Appel Molot. “Continentalizing the North American Auto Industry,” in Grinspun, 1993. -Fuss, Melvyn and Leonard Waverman. “The Auto-Pact and the Canada-U.S Free Trade Agreement, “ in Gold, 1988. -Gindin, Sam. “The Auto Sector,” in Cameron, 1993. -Holmes, John. “The Globalization of Production and the Future of Canada’s Mature Industries: The Case of the Automotive Industry,” in Drache, 1991 -Johnson, Jon R. “NAFTA and the Trade in Automotive Goods,” in Globerman, 1993. -Mackenzie, Hugh. “Free Trade and the Auto Industry,” in Gold, 1988. -Wakefield, T.A. “The Canada-U.S Free Trade Agreement and the Canadian Auto Industry,” in Gold, 1988. -Wonnacott, Paul. “Autos and the Free Trade Agreement,” in Gold, 1988.
17. Did the dispute settlement mechanism in CUFTA and NAFTA achieve Canada’s goal of ‘secure access’ to the American market? -Davey, William J. Pine and Swine. Ottawa: The Centre for Trade Policy and Law, 1996. -Doran, Charles. “Trade Dispute Resolution ‘On Trial’: Softwood Lumber,” International Journal 51:4 Autumn 1996. -Howse, Robert. “Settling Trade Remedy Disputes: When the WTO Forum is Better than the NAFTA,” C.D. Howe Institute Commentary 111 June 1998. -Beatriz Leycegui, William B.P. Robson, and S. Dahlia Stein, eds., Trading Punches: Trade Remedy Law and Disputes under NAFTA (Washington: National Planning Association, 1995). USA 401 H-F, fall 2005 17 -Rugman, Alan M. and Andrew Anderson. “A Fishy Business,” Canadian Public Policy 8:2 June 1987.
18. Analyze the proposals for fixing North American governance that were published in the wake of Sept. 11, 2001. These were made primarily by the C.D. Howe Research Institute and can be found on its website: [email protected] but also by: Canadian Council of Chief Executives (formerly Business Council on National Issues) Canadian Centre for Policy Alternatives Centro de Investigaciones sobre América del Norte (CISAN in the Universidad Nacional Autónoma de México) Colegio de México Fraser Institute Independent Task Force on the Future of North America (“Manley task force”) Institute on International Economics, Washington Institute for Research on Public Policy Policy Research Institute (in the federal government’s Privy Council Office) (
19. Did Canada's and Mexico's refusal to support the United States in its war on Iraq prove that national autonomy is compatible with continental integration?
20. Another subject of your choice subject to our approval.
USA 401 H-F, fall 2005 18 BIBLIOGRAPHY To help you get going on your essay thinking I have listed a handful of introductory readings with each topic. They will not be enough to do a good essay. To help you find more references, a very large bibliography classified by the topic categories listed below is located on my web site whose address is indicated on the cover page of this syllabus. To facilitate your research, entries include the U of T library system call number. The web site: http://www.chass.utoronto.ca/~clarkson/courses/pol341y_bib.html Here is its table of contents.
The Political Economy of The Canadian-American Relationship
General Information 1. Periodical Publications...... 1 2. Official Publication ...... 5 3. Other Periodical Publications...... 6
Part I: Economics 1. Canada: Economic History and Theory ...... 7 2. The United States: Economic History and Theory ...... 8 3. Mexico: Economic History and Transition...... 9 4. Asia ...... 9 5. Hegemony ...... 11 a) Dependence and Imperialism...... 11 b) Hegemonic Decline ...... 12 6. Economic Relations in North America ...... 13 a) Canadian-American Economic Relations and the Tariff...... 13 b) Economic Treaty-Making and Trade Policy ...... 15 7. North American Business Multinationalism...... 16 a) Transnational Corporations...... 16 b) Canadian Transnational Corporations ...... 18 c) Foreign Investment in Canada, the United States, and Mexico...... 19 8. The Automobile Industry ...... 22 a) The Auto Pact ...... 22 b) The Canadian Automobile Industry and North American Integration...... 22 c) The Mexican Automobile Industry and North American Integration ...... 23 9. Science and Technology ...... 23 10. Primary Industries: Energy, Agriculture, and Natural Resources...... 25 11. The North and Native Peoples ...... 28
Part II: Politics 1. Nationalism ...... 29 2. Foreign and Defence Policies…………………………………………………….31 3. Canadian-American Relations ...... 38 4. Mexican-American Relations...... 40 USA 401 H-F, fall 2005 19 5. Integration ...... 41 a) North American Integration...... 41 b) Hemispheric Integration ...... 44 c) European Integration...... 45 d) Global Integration...... 49 6. Globalization 56 7. International Political Economy...... 58
Part III: Society 1. Americanisation: Society and Values ...... 63 2. Americanisation: Politics ...... 65 3. Trade Unions and the Labour Market ...... 65
Part IV: Culture 1. Cultural Policies...... 68 2. Education ...... 70 3. Telecommunications and Media ...... 71 4. The Film Industry...... 73
Part V: Free Trade 1. Free Trade Agreement Documents ...... 74 2. Government Documents on Free Trade ...... 74 3. The Canada-U.S. Free Trade Agreement...... 75 4. The North American Free Trade Agreement ...... 79 5. Dispute Resolution...... 82 6. The Environment...... 85 a) North America ...... ………85 b) International Trade and Sustainability...... 87 7. Services, Telecommunications, and Intellectual Property ...... 88
USA 401 H-F, fall 2005 20