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University of Southern Maine

ECO 370 - Spring 2006
Instructor:
Prof. Bill Phillips

Term Project
Created by: John Bell

- Home -
Introduction
History
Statistics
Physical Infrastructure
Political Infrastructure
Legal Infrastructure
Infrastructure Costs
Conclusion
Last Update:  5/9/2006

The Infrastructure of US-Canada Trade


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Introduction
Trade between the United States and Canada requires substantial infrastructure cost.  A significant amount of this cost is public cost—paid for by citizens of both countries through taxes.  The object of this web site is to look into the various types of the transportation, political and legal underpinning that enables free trade between the United States and Canada to take place.  The extent, and some of the infrastructure costs, especially the public costs, will be explored.
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History
Free trade did not come easily between the US and Canada.  It was not until 1989 that the two countries had established a formal trade agreement with each other.  Prior to this, the US and Canada had a system of tariffs that stopped attempts at free trade between the two nations.
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Statistics
It is helpful, in trying to understanding the infrastructure components of trade between the United States and Canada, to get a general idea of the types and quantities of products traded.  It is also important to understand the contribution trade makes to the overall economies of each country.  Knowing how trade between the US and Canada compares with global US and Canadian trade, as well as the knowing the trade balance between the two countries, provides insight into the importance of this trade relationship.
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The Infrastructure
Entire industries are based, to a large extent, on importing and exporting of goods between the US and Canada.  Truck, rail, ship, and pipeline make up the bulk of the physical infrastructure that is used to transport the traded goods.  Many organizations and agencies exist to ensure that the trade transportation infrastructure has a high priority in budgeting and government resource allocation.  Governments, at all levels, play a significant role in building and maintaining the physical trade infrastructure. Each country has specific courts that deal with disagreements that arise over trade issues.
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Infrastructure Costs
Trade between the US and Canada is extensive.  Not including the cost of the actual products or services that are traded, this section attempts to define just how much effort and money, free trade actually involves.
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Conclusion
Free trade, between Canada and the US has been important for some time and will continue to be so moving forward...