A Trading Nation: Canadian Trade Policy from Colonialism to Globalization

David E. Smith is a professor of political Studies at the University of
Saskatchewan. He is the author of Building a Province: A History of
Saskatchewan in Documents, The Invisible Crown, and Republican Option in
Canada, Past and Present.

In this study of Canada’s trading practices, Michael Hart accomplishes
a prodigious feat of synopsis. But he does something of even greater
importance: he explains for the lay reader how the goals and practices
of Canadian trade took form and evolved. The evolution is the
better-known part of the story, since it comprises the familiar
“isms” of empire, nation, continent, and globe.

Employing an impressive array of historical facts and economic data,
Hart recounts Canada’s quest for a coherent trade policy. Trade is
coherent when there is a balance between promoting exports
(historically, in the form of natural resources) and protecting domestic
industries. From the point of view of the study of politics, however,
the real contribution of the book lies in its discussion of the actors
who participated in the quest.

Macdonald and the national policy, Laurier and reciprocity, Bennett and
imperial preference are dependable characters in any national story.
Less appreciated but vital to understanding trade over the last
half-century is the supplanting of politicians by permanent bureaucrats.
Here, in the discussion of post–World War II trade promotion, is where
Hart’s account is in a class by itself. Nor—and this is
important—is he parochial. The contrasts he draws between Canadian and
American actors—that is, between bureaucrats and politicians,
executives and legislatures— in the formation and implementation of
trade should be required reading for every student of Canadian politics.

And there is still more: for instance, Hart discusses the historical
kaleidoscope of the tariff, taxation, and fiscal policy, and their
changing fortunes for trade. When was that last discussed in a text on
Canadian government? Yet the implications for politicians and political
parties are immense. Again, he describes in comparative terms the
different instruments—rules, regulations, statutes—Canada and the
United States use when implementing trade policy.

Hart’s book is fundamental to understanding modern Canadian politics
and public policies. One reason it is essential is that, as the author
himself says, Canadians historically see the subject of trade as
esoteric and abstract. As the book makes abundantly plain, that attitude
is a misperception that can have expensive and troublesome consequences.