An Historical Analysis of Foreign Ownership Restrictions in the Canadian Telecommunications Sector Marsha Ann Tate (
[email protected]) College of Communications The Pennsylvania State University Communications 581 Fall 2001 Semester Paper Dr. Taylor Foreign Ownership Restrictions in the Canadian Telecom Sector: M. A. Tate 2 Introduction In addition to a several thousand mile long border, Canada also shares a variety of cultural, economic, historical, sociological, and technological similarities with the United States. These numerous commonalties have helped foster close ties between the two countries. As the U.S. State Department's March 2000 Background Note: Canada attests: The bilateral relationship between the United States and Canada is perhaps the closest and most extensive in the world. It is reflected in the staggering volume of trade -- over $1.4 billion a day--and people--over 200 million a year--crossing the U.S.-Canadian border. Canada and the United States also share one of the world's largest bilateral direct investment relationships. Stock of U.S. direct investment in Canada was estimated at $116.7 billion, or about 72% of total foreign direct investment in Canada at the end of 1999. Conversely, Canada is the third-largest foreign investor in the United States with direct investments totaling approximately $90.4 billion at the end of 1999 (Background Note: Canada; U.S. Department of State, March 2000). Canada's multiple similarities to the United States coupled with large disparities in population and market size (Canada's market is approximately ten times smaller than its U.S. counterpart), have historically raised Canadian fears of cultural, economic, and political domination at the hands of its southern neighbor.