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Abstract

Canada has long been one of the most important trading partners for the United States. Canada, primarily British Columbia, is the second most important international trading partner of Washington State. In 1986, trade between Washington and Canada exceeded $3.5 billion dollars. This trade relationship will be enhanced by the fact that both the United States Senate and the Canadian Parliament have ratified the United States-Canada Free Trade Agreement, which went into effect on January 1, 1989. By its terms, this agreement drastically reduces or eliminates tariffs on commerce between the two nations within the next ten years. As a result, the ratification signals the beginning of a period of increased commercial activity between American and Canadian business people. This is particularly true between Washington and British Columbia where tariffs have prevented competition between the adjoining state and province.

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