Canada exports 45 percent of its GNP to the United States. Approximately 55 percent of our GNP is trade related more than twice the US level. Yet Canadians remain ambivalent about trade with only 46 percent believing that NAFTA has helped our economy (vs. 65 percent of Americans). Since the US - Canada FTA in 1988 our economy has grown from 500 B +/- to over 1 Trillion. By contrast since 1995 and the NAFTA accord the Mexican economy has grown from US$200 B to now US$600 B or about C$900 B - a tripling in 7 years. Soon Mexico will possess a larger economy than Canada's.

For more on globalization and the myths that permeate the concept click here.

The increase in trade has two effects regarding taxation; 1. It expands the domestic economy broadening the tax base. 2. Trade might or might not create jobs (most likely a small increase) but more importantly, all things considered it should force a country up the value chain in jobs and job creation and 3. Trade helps minimize government coercion and exaggerated taxation. Capital and knowledge are somewhat fluid (not nearly as fluid as the media portrays) but even such limited mobility helps keep government in check.

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the Political-Economy of North America. (PDF file).