New Wine in Old Bottles? The Democrats’ Trade Agenda and its Implications for Canada

From the moment the Democrats took control of the United States Congress in the 2006 mid-term elections, Canadians have been trying to anticipate the future of U.S. trade policy. Will protectionist voices win the day in Washington? Has the Democratic takeover of Congress doomed the current round of talks at the World Trade Organization? At first blush, there is every reason to fear an increase in U.S. protectionism. After all, the Democrats have been known as the party of protectionism since the Second World War. But this briefing argues that despite all the talk about what the Democrats might do, they are not going to retreat from globalization—and Canadians should not be distracted by the recent announcement that Congress and the Bush administration have reached agreement on a ‘new’ trade policy.

This report was produced by Signal49 Research’s International Trade and Investment Centre that examines the implications of global economic dynamics for Canadian business and governments leaders. More on the Centre’s research, events, and membership