Due and that maintaining good relations was

Due to Canada’s geographical location, good relations with the USA was almost mandatory, it was even argued in the past that Canada was a cousin of the United States, and at one point, many Canadians even believed that Canada was probably better off joining America as a whole. It is evident that these two countries are actually closer than any other countries with bilateral relationships. Although there have been strains and enormous challenges in the history of these countries, the two always had some sort of ties between each other. Canada-US relations have greatly helped to achieve a greater sense of autonomy in Canada through Canada’s announcement to maintain good relations with America, the Great Depression, the Auto Pact, and NAFTA.During the First World War, Canada and the US were still skeptical about each other, especially because Canada was fighting as part of Great Britain, while the US remained neutral. However, Prime Minister Robert Borden quickly assured the US that Canada wanted no unneeded conflict between the 2 countries and that maintaining good relations was a priority. This probably eased tensions, as the US had not yet eliminated the probability of an attack on the US by Canada or Great Britain. Trade between Canada and the US was also very low at the time, population in Canada was only 3.7 million people, whilst America had almost 40 million. This probably scared Canadians because after the First World War, the US was seen as a dominant power. However during the postwar period between 1920-1930, Canada and the US were starting to become very close friends. This was important for both countries because by having good relations with each other, it meant that less money would have to be spent on maintaining border control, and so both countries eventually eliminated the probability of cross-border conflict. Good relations also meant that trade between the two countries would be increased, and therefore their economies would also be boosted. This proved to be true, as America passed the Underwood Tariff as part of the Revenue Act of 1913. This Act was meant to increase competition in US markets, it decreased tariffs on most items, and added many items to the free list such as steel rail, iron ore, agricultural equipment and many more. This Act benefitted Canada especially because at the time, Canada was a very small country, with not alot of influence on anything but with this Act, trade between the two countries took off and Canada’s economy was starting to rise. The Great Depression was a dark time in history, but its important we learn about the impact it had on Canada and why it occurred. The Great Depression really wasn’t caused by just one event in particular, but a series of unfortunate events that all just seemed to occur at the same time. One of the bigger causes of the Great Depression however, was because of the US’s decision to enact the Smoot-Hawley Tariff Act of 1930. This tariff took US tariffs to record levels, and dealt a devastating blow to Canada especially because of their dependence on Canada-US trade. Between 1929 and 1933, Canada’s Gross National Expenditure (overall public and private spending) fell by 42%. By 1933, 30% of the working populations lost their jobs, and one in five Canadians had become dependent upon government relief for survival. The unemployment rate would remain above 12% until the start of the Second World War i