evandyk
Senior Member
People have been talking about how we need to reduce economic dependence on the US since the 1950s, but it has only ever moved in one direction, at least since the '30s when Canada started to move from trade with England to trade with the US. Nobody has found a way to make it otherwise.
policyoptions.irpp.org

Has North American integration resulted in Canada becoming too dependent on the United States?
There are two main concerns expressed about the Canada’s economic dependence on the US. One is the ”œall the eggs in one basket” concern relat- ed to increased risk associated with increased specializa- tion in one geographic market. According to Gilbert Winham and Sylvia Ostry , Canada is...

In 1956, J. Douglas Gibson argued that:
Many Canadians feel a little uneasy because we now send such a large proportion of our exports to the United States. Though a feeling of concern is understandable, the fact is that we have had no practicable alter- native to increasing our exports to the United States. In the post- war period the big increase in demand has come from the United States and it must be admitted that the increase has been very welcome in Canada. No remotely compa- rable opportunity for expand- ing our export markets has been available in the sterling area or elsewhere, particularly in the early post-war period when we were worried about obtaining adequate markets.
In 1959 Simon Kuznets pointed out that one source of the unease is that Canada’s dependence upon United States markets makes Canada sensitive to ”the vagaries of United States economic policy.” So the dependence could lead to increased risk from business cycles, eco- nomic shocks that adversely affect the US economy or economic policy.