Canadian-American Relations

Report Outline
Tensions in Economic Sphere
Redirection of Relationship
Canada's Political Directions
Special Focus

Tensions in Economic Sphere

Disagreement Over Energy Trade Policies

Canadian-U.S. relations have entered a difficult period of transition. Canada is attempting to reduce its dependency on the United States and to establish a distinctive national identity in economic, cultural and foreign affairs. The United States, meanwhile, is having to adjust to this surge of Canadian independence at a time when the importance of Canadian economic and political cooperation has become increasingly clear. The ensuing tensions, concluded a recent report by the Canadian-American Committee, have tended to overshadow the underlying good will that exists among the majority of people on both sides of the border.

To Canadians, the remarkable aspect of the American presidential election this year was that U.S.-Canadian problems did not enter the political debate. From this absence of discussion, an American might infer that all was well between Ottawa and Washington. A Canadian, on the other hand, was likely to regard it as an example of American insensitivity or indifference to Canada.

Recent tensions between the United States and Canada can be traced, in large part, to cutbacks in Middle East oil production following the 1973 Arab-Israeli War and subsequent increases in oil prices. During the 1973–74 energy crisis, Canadian oil exports to the United States became a major point of contention between the two countries.