No industry has a better history of Canada-U.S. relations than the auto industry, whose highly integrated supply chains generate nearly $110 billion in bilateral trade. Factories in both countries specialize in specific components of vehicle manufacturing. When a car drives from the assembly line, some materials/components have passed through the U.S. Canada-USA. frame several times during the production process. On November 6, 2015, Obama announced the rejection of the Keystone XL pipeline project by the U.S. State Department, the fourth phase of the Keystone pipeline system between Canada and the United States, to which Trudeau was disappointed, but stated that the rejection would not damage Canada-U.S. relations and would instead be a “new beginning” for strengthening relations through cooperation and coordination, and stated that “Canada-U.S. relations are much greater than any other project.” [127] Since then, Obama has praised Mr.

Trudeau`s efforts to prioritize reducing climate change and said it was “extremely helpful” to reach a global consensus on solving the problem. [128] For investigations into disputes between foreign investors and host countries, see the Law Library`s Guide to International Investment Law. For research on cross-border commercial disputes between private parties, see the Law Library`s Guide to International Commercial Arbitration. Defence Minister Harjit Sajjan warned that the delay in the purchase of the new aircraft could create a growing “capacity gap” between Canada`s NORAD and NATO commitments and the number of fighter jets available for use41 The Trudeau government proposed: Buy 18 new Boeing F/A-18 Super Hornets to complement the current FLEET of CF-18s on an interim basis, but overturned the purchase decision after Boeing successfully launched a petition in the United States. In April 2017, the Department of Commerce imposed anti-dumping and countervailing duties on Bombardier Aircraft of Canada for unfair business practices (see “commercial aircraft”). Instead, Canada decided to purchase 18 used F/A-18s from Australia. Many defence analysts questioned the decision and found that the F/A-18s required costly modifications and maintenance after delivery and that the capabilities of more modern aircraft were lacking, this could jeopardize interoperability with the United States and other allies.42 The conifer timber trade has traditionally been one of the most controversial topics in the U.S.-Canada trade relationship, now in its fifth round of litigation. The dispute concerns different tariff policies and forest management structures in Canada and the United States. In Canada, most forests are owned by Canadian provinces such as the crown, while in the United States, most forests are privately owned.

The provinces provide wood to producers under long-term enterprise agreements and apply a “cutting levy” that U.S. producers say is not determined by market forces, but serves as a subsidy to promote Canadian industry, sector employment or regional development. Canada denies that its wood management practices are a subsidy and says it has a comparative advantage in the wood industry and a more efficient industry. The United States had become Canada`s largest market, and after the war, the Canadian economy became so dependent on the fluidity of trade with the United States that in 1971, when the United States launched the “Nixon Shock” economic policy (including a 10% tariff on all imports), it alarmed the Canadian government. Washington refused to exclude Canada from its new 1971 economic policy, so Mr. Trudeau saw a solution in closer economic relations with Europe.