Asking why Canada entered into the 1988 Free Trade Agreement with the United States of America is asking a complex question that will likely provoke a different response from each respondent. The best one can do in analyzing the multitude of elements that led to this agreement is to eliminate any preconceived ideas they may have about trade liberalization and attempt to objectively assess the problems facing this country faced in the years leading up to the agreement. 1988. Free trade between Canada and the United States is probably one of the most controversial issues our country has ever faced. This becomes evident when studying Canadian history in the 19th and 20th centuries. Canada's economic development has prospered, but has been hampered, by our overwhelming dependence on "commodity" exports to the United States. A lengthy analysis could be done to discuss why our economy has evolved to become so dependent on a single nation for its economy. development. However, this analysis focuses primarily on the direct issues that led Canada to join the FTA on January 1, 1989. To begin, we must discuss the fiscal uncertainty caused by two economic recessions, the first since the Great Depression, and subsequent measures adopted by the ruling Liberals to combat the problem. Second, a global ideological shift began during the 1970s toward the adoption of neoliberal free market principles that upheld free trade agreements. Third, the emergence of global regional trading blocs and increased U.S. protectionism have caused Canadians to consider their economic position in a changing global environment. Finally, and perhaps most importantly, the 1980s marked the decade in which corporate power was manifested...... middle of paper ...... Investment in Canada (Ottawa: Government of Canada, 2012) Last modified on 2012, 04. http://www.international.gc.ca/economist-economiste/statistics-statistiques/data-investments-entreprises/data-FDIC/FDIC_US-EU_Sector.aspx?lang=fra&view=dMagdoff, Fred and John Bellamy Foster, What. Every Environmentalist Needs to Know About Capitalism: A Citizen's Guide to Capitalism and the Environment. New York: Monthly Review Press, 2011. McBride, Stephen and John Shields, Dismantling a Nation: Canada and the New World Order. Halifax: Fernwood, 1993. McDougall, John N., Adrift: The Political Economy of Canadian-American Integration. Peterborough: Broadview Press. 2006. Rugman, Alan M., “Why Business Supports Free Trade” in Free Trade: The Real Story. John Crispo, ed. Toronto: Gage, 1988. Warnock, John W., Free Trade and the Right's New Agenda. Vancouver: new star, 1988.