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International trade & investment, Deep integration

Canada has little to gain, much to lose from a customs union with the U.S.

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OTTAWA--Among the proposals for closer economic ties between Canada and the United States is a call for a Customs Union, which would entail a common external tariff, a common trade policy, and the elimination of "rules of origin" alleged to impose heavy costs on exporting firms.

In a new CCPA study of the proposed Customs Union--which is favoured by many Canadian business executives, politicians, bureaucrats and academics--economist Marc Lee concludes that the economic and political costs for Canada would far outweigh the benefits.

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