Growing rift between Canada and US affecting economy

The relationship between Canada and the United states has had its share of ebbs and flows, twists and turns and ups and downs.

A new report by the Fraser Institute released on Thursday suggests that there is a growing rift between the two countries. A rift that, in some ways, negatively affects Canada.

The report titled ‘The State of Canada-US Relations 2014’ does a good job of highlighting recent U.S. government measures that have hurt our economy:

The main sector in US-bound trade showing growth in the last decade, crude oil products, is also the one facing most political interference from US decision makers.

The six-year delay in the international permit for [the Keystone XL pipeline] to cross the Canada-USA border is without precedent in our bilateral relations. At the same time, the US mandatory country-of-origin labeling rule, which took effect in 2009, has severely damaged the decades-old and deeply integrated supply chain in beef and pork, costing Canadian producers some $1 billion per year.

‘Buy American’ in the public procurement sector remains a latent threat to bilateral relations.

While American trade barriers have risen, Canada has removed some from its side: intellectual property rights have been strengthened, and the Canadian Wheat Board dissolved.

The Fraser Institute notes that while Canada is working to diversify its economy with trade to Europe and Asia, the economic impact from those deals pales in comparison to our trade with the United States.