Joining Trade Associations: British and Canadian Experiences

Abstract

<p>Trade blocs are becoming very significant in the world economy as countries increasingly find it difficult to maintain economic and political power on an individual basis. Britain and Canada are two countries who have recently chosen to join one of these blocs; Britain joining the European Economic Community in 1973 and Canada joining the North American Free Trade Area in 1988. Although the two countries took similar action, their experiences were in many ways quite different, which makes comparing the two cases particularly interesting.</p> <p>First, the historical evidence for both Britain and Canada is examined. The way in which each has developed its past and present international trade relations has considerable bearing upon how it perceives itself in the world and therefore the role it might be prepared to play in a trade association. Second, the methodological evidence is considered. The type of economic models, and the philosophical framework behind them, which a country's analysts use to determine what the likely impacts from trade bloc accession will be, are particularly indicative of that country's national priorities, and often show what its government hopes to gain from any agreement which has been made.</p> <p>From the comparison of the two countries' experiences, emerges a unifying theme; namely that both their historical trade relations and their methodological approaches can be explained by reference to their, and their analysts', situation in time and· space. This finding therefore has encouraging implications for the possibility of, establishing a uniquely geographical approach to the study of such complex phenomena as international trade associations.</p>