Part 12: Canada in the Global Economy
We address the gains from international trade in Chapter 32. We have
clarified the discussions of the determination of exports and imports in a
competitive market. In Chapter 33 on trade policy, the views and policy
actions of U.S. President Trump now figure prominently in several places.
In our discussion of how protection might improve a country’s terms of
trade, we have added the example of Chinese tariffs on imported
automobiles; we also use China as an example of a country that uses the
“infant industry” argument for some trade protection. When discussing
“tariff wars,” we now discuss President Trump’s new tariffs on steel and
aluminum. This leads to a box on tariff wars in history, which has been
expanded to include a discussion of recent U.S. trade policy. The
discussion of NAFTA has been updated, and we have added a discussion
about the importance of integrated supply chains between the three
NAFTA countries, especially in the auto sector. This leads to a new
section examining the current political threat to NAFTA from the U.S.
administration.
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