Pierre Elliot Trudeau: Canada’s Identity and Relations with the United States

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Pierre Elliot Trudeau: Canada’s Identity and Relations with the United States Throughout Canadian history, Canada’s relations with the United States play an important role in developing its identity and culture. As the role of the Prime Minister, it is his or her responsibility to set out those relations that significantly affect the nation. Former Prime Minister, Pierre Elliot Trudeau had the greatest impact on Canadian-American relations as his efforts pushed for a stronger Canadian identity, which created distance in the relationship between Canada and the United States. Since elected, Trudeau introduced policies and organizations that created a wedge between Canada and America’s economy, subsiding Canada’s dependency on the U.S. In August 1971, America had introduced its New Economic Program (NEP), also referred to as the Nixon Shock. This new economic plan drove an end to the “special relationship” that existed between Canada and the United States since WWII, as the new program called for import surcharges as well as tax credits on American-produced machinery. This program had a great affect Canada’s trade and relationship with the U.S. and as a result, Trudeau and his government were given three options in response. The first was to stick with the status quo, the second was to form closer ties, and the third choice was to rely less on the U.S.A while strengthening Canada’s economy. Canada adopts the Third Option policy, and sets out to diversify international trade and build economic nationalism. The creation of the CDC (Canadian Development Corporation) and the FIRA (Foreign Investment Review Agency) allowed Canada to invest heavily on Canadian companies and restrict control from foreign investors. Trudeau also introduced Canadian companies such as Petro-Canada, an oil company created to compete with American oil businesses. In turn, Trudeau developed

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