That was like putting a 17 per cent tariff on Canadian exports to the U.S. and simultaneously removing a 17 per cent tariff on imports. The Canadian economy faltered badly in that period and really didn't begin to grow steadily again until the currency fell to the 65 cent U.S. range late in the 1990s. But there are limits to the acceptability of currency devaluation. Call that the prospective FTAA dollar. Accepting the FTAA means facilitating U.S. dominance.
Capital now flows from poor countries to the richest.
This reflects unequal power relations in the Americas not sound economic principles. In promoting the FTAA, Canada is doing American bidding. Since the Monroe Doctrine, where the U.S. arrogated to itself the role of the hemispheric boss and guardian, Canada has largely avoided taking sides in disputes within the Americas or even participating in hemispheric affairs. Canada's history, our economic structure, and policy needs suggest that we have much in common with Caribbean and Latin American nations. We need to establish a development model that serves their citizens needs and ours, not the U.S. government, and the transnational corporations.