Diplomacy and Trade Relations between the United States and its Two Major Trading Partners

The main objective of this document is to address the commercial links the United States has with its two significant partners. The evolution of that relationship will be analyzed from politics to commerce, in which, nowadays, these countries’ comprehensive bilateral links are highlighted. The argument that will be presented next is the relationship between diplomacy and trade, which is vital nowadays for the development of international relations, taking into account that these nations are highly recognized and have clear and accurate information regarding the construction and outcome of what is mentioned above..

Firstly, diplomacy can be said: “Diplomacy has probably existed since the time of civilization. The benefits are obvious when you consider that diplomacy can promote exchanges that enhance trade, culture, wealth, and knowledge”. (McGlinchey, 2017)

Based on the definition above, we will start by presenting an example of an international franchise: the United States Department of Commerce. A commercial franchise is nothing more than a form of license, by which the owner or holder of a product, service or method carries out its distribution through affiliated resellers (Llain-Arenilla, 2016).

Therefore, a franchise is an agreement of wills in which a company and a franchisee must participate, developing, in turn, a method or a formula to manufacture and/or sell a product or service. Franchises can be impacted by other companies or franchisees and the right for the business to continue is subjected to certain controls and restrictions. In short, the previous content, in theory, must be fulfilled perfectly. However, in reality, this almost never happens considering  the legislative differences or the adaptation of companies within their target territory.

Regarding franchises and the relations between the United States and Canada, in 1965, an agreement was concluded to allow North American producers to streamline production plants by eliminating Canadian and US customs duties on cross-border shipments of finished vehicles and original car parts. Specifically, the Auto Pac was opened with emphasis on the basis of tax exemption of exports of automotive products originating in Canada to the United States market. This treaty was formalized and put into operation before Canada began a policy based on the rise of nationalism in the 1970s, with the government of Pierre Elliot Trudeau, which established new regulations to strengthen its economy (Montero, 2014).

In 1985, the Canadian government’s objectives focused on strengthening competition and the of the national industry. The Liberal administration reaffirmed its commitment to reviving trade and promoting defense of the West, arms control and the promotion of a disarmament policy to reinforce the country’s security. Specifically, Canada’s economic expertise focused, in an important way, on a series of structural changes that began in the mid-1980s, including an open program of privatization of state-owned enterprises, with the aim of replacing public assets with private capital.

Next, we will discuss Donald Trump’s presidency, characterized by his protectionist mindset about the economy and his evident rejection of immigrants. Also, we can highlight his well-known trade war with the People’s Republic of China and the nations that are in favor of developing political plans regarding climate change, among other issues. “So we must accept that this mandate full of controversy and far from the legacy left by his predecessor, however this leader is hated by many but in turn is loved by others, due to its increase in the economy and futurist projection of being a world power alone”. (Tsang, Carlos Teja & Amie, 2019).

Finally, the last presidential elections in the  country were between the candidates Donald Trump (Republican) and Joe Biden (Democrat). The intention to vote for representatives showed a superiority of the Republican Party over the Democrat. That fact was evidenced by marches, protests and conflicts of thought regarding the global COVID-19 pandemic. The nation has collected 47,750 deaths as a result, and a global economic recession has been caused as well as a new complex political and economic map has developed for a new presidential term.