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Tuesday, October 25, 2005

Rice tries to mend a rift.

Canada's relationship with the US is more strained and combative than at any time in history. Irate over import duties being applied to Canadian goods, especially softwood lumber, that are in violation of NAFTA, the Canadian government believes America is ignoring the signed treaty, therefore they will now begin to expand trade with China. Canada has appealed the US actions under the signed NAFTA rules, and has won every ruling.

The Canadians may shift a significant portion of their trade, particularly oil to China. Believed to have the worlds second largest oil reserves, this would have very negative consequences for a nation unwilling to improve energy efficiencies or to develop alternative technologies. The State Department acknowledges that there is a “strategic advantage in getting oil from Canada...But petroleum is a fungible resource, and we are going to fill our energy needs from wherever we can get oil."

Rice has stated she will stress the positive relationship between the two countries and is “absolutely prepared to discuss" trade “but it is important to keep it in perspective." Translation – The US is the big guy, screw off.

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