European Stars And Stripes (Newspaper) - July 19, 1988, Darmstadt, Hesse                                Tuesday july 19, 1988 the stars and stripes Page 9 economies of ., Canada merging 260 million Consumers reap benefits by Andrew h. Malcol new York times Canada with the world s second larg est area and the United states with the world s largest free Market Economy Are fast forging a colossal Continental econ omy of nearly 260 million Consumers. And they Are doing this quietly almost without noticing it themselves. Trade Between the two countries exceeds $150 billion a year resulting in the world s largest bilateral trading relation ship. Their 5,524-mile undefended Bor Der is crossed about 75 million times a year. The United states trades More with the province of Ontario alone than it does with Japan. Canada buys one fifth of All american exports twice As much As Japan buys. The United states buys More than three quarters of All Canadian exports. The american Canadian economic relationship interconnected by common Telephone computer and Power lines by satellites contracts and Cross ownership and even by common professional sports allegiances is so vast that government officials acknowledge they cannot keep track of its Complex dimensions let alone control them. Now Legislatures in both lands Are de bating a free Trade treaty to eliminate remaining tariffs in 10 years. The rapid emergence of High powered closely linked economies within global regions has surprised officials trying to remove Trade barriers Between individual nations. In Europe the economic Community is creating a bloc with inti mate connections and 350 million con Sumers who retain their National Cul Tures. Japan with the world s no. 2 free Market Economy leads asian development. Mexico a less developed nation concerned about its infant industries has rejected similar associations with its neighbors As premature. In Many respects the american Ca Nadian treaty currently being considered by both countries Legislatures is merely the two governments hurried attempt at political recognition of a snowballing economic integration. This bilateral Inte Gration which now includes a significant flow of Canadian capital is proceeding As fast As aggressive Small businesses and huge multinational corporations in both countries decide is in their self interest. The free Trade debate is practically irrelevant from an economic stand Point said Alan Rugman professor of International business at the University of Toronto because with or without the formal agreement Canada and the United states Are rapidly integrating themselves  american investment has Long been Strong in Canada which has $103 billion Canadian in foreign investment 72 percent of it american. In fact one third of All american investment abroad is in Canada. Now Canada its name comes from Kanata the Huron Iroquois word for settlement is the fourth largest foreign investor in the United states. For decades Canada worried about becoming the 51 St state. Now Tennessee seeking to attract Canadian investment advertises itself As the Lith  every week brings major new Canadian investment Robert Campeau s celebrated slug est to control Federated department stores or Conrad Black s quiet accumulation of nearly four dozen news papers. Toronto s Ken Thomson owns an additional 110 newspapers in the United states. Garth Drabinsky s Cine Lex controls 1,500 american movie screens. Olympia & York run by Toronto s Reichmann Brothers is Manhattan s largest Commer Cial landlord controlling 25 million Square feet of prime office space in the the faces of Many canadians Are so familiar that countless americans Are unaware that these men in the Public Eye Are actually  Canada s prime minister Brian Mulroney left enjoys a Friendly relationship with the United states. A up right most  Moviegoers would never guess the Man in Center is Canadian actor Michael j. Fox. And How Many american to viewers know that newscaster Peter Jennings right also is from across the Border Borough one Square foot for every Canadian. Canadian Pacific Northern telecoms Bombardier Seagram and other Canad an companies control thousands of jobs in both countries. Several american Banks ranging from Chicago s Mammoth Harris ban corp to the first National Bank of Rural barring ton 111., Are controlled by canadians. Canadian jewellers druggists clothing designers and outlets Cable television operators and insurance companies have successfully marched South. Ca Nadian and american teams routinely compete in professional hockey and baseball. Human organs regularly Cross the Border for transplant. Canadian developers in league with Canada s Small fraternity of National Banks rebuilt much of several american downtown. Tourism officials in Alaska and the Yukon territory next door advertise jointly. Annual sales of Canadian generated electricity to americans now exceed $1.2 billion with contracts for $32 billion More already signed by Hydro Quebec and northeastern states. Toronto s har Lequin churns out Romance novels for millions of readers on both sides of the Border. The Canadian authors Robertson Davies Margaret Atwood and Farley Mowat appear regularly on Amer ican bestseller lists while other canadians like Peter Jennings Morley safer Rich Little and Michael j. Fox appear regularly on to in american living rooms. Often Canadian Money quietly Bank Rolls major american takeovers. When the modern merger Era began Canada s dome Petroleum made a bid for Cono co. That unsuccessful Effort disclosed the weakness of Conoho which was acquired by . Dupont de Nemours & co., which is now one fifth owned by sea Gram. Vancouver s Belzberg Brothers participated in corporate raids sometimes with t. Boone Pickens. The aggressive spread of Canadian business should not be surprising. In a country 121 years old and with-25 Mil lion people Canada s markets and Many Canadian companies Are essentially mature. Next door sits a Market nearly 10 times larger with radically differing poli tics but a strikingly similar capitalist Cul Ture. The United states has the same profit motive and even the same name for its currency. Canada s breweries in a stagnant Domestic Beer Market logically looked South. Studies indicated that by Advertis ing Canada s Crystal Clear water by using Green bottles which americans associate with fancy import Sand by hauling them across a Bridge to Buffalo or de troit they could charge a Premium Price in valuable  Dollars. Today three of the american Market s top 10 Beer imports Molson a Labatt a and Moose head Are Canadian. At projected growth rates Canadian Brewers May soon sell More Canadian Beer in the United states than in Canada. New Brunswick s Moose head Beer still unavailable in six of the 10 prov inces is already on Sale in All 50 states. The Canadian business Community has definitely matured said Rugman. There is a deepening understanding that Canadian companies especially the multinationals can compete with anyone in the big  Rowland c. Frazee former chairman of the Royal Bank said we used to be a Large Canadian Bank with International operations but now we Are a Large inter National Bank with a Strong Canadian  when Toronto s four seasons luxury hotel Chain decided to expand it entered the Tough  Market. Why not said Isadore Sharp the Chain s founder who now runs five hotels in Canada and 14 in the United states including the Pierre in new York. Such Confidence is characteristic of a new wave of Canadian entrepreneurs. Many of them Are immigrants or their children who did not attend the prep schools and colleges that traditionally guaranteed Access to Canada s ruling business class and its Clannish Bank boards. Prime minister Brian Mulroney reflecting the new Confidence deals with americans less like a belligerent younger brother coming of age and More like an equal. A conservative in the Canadian Politi Cal spectrum which is Liberal by Ameri can standards Mulroney has built a Strong amicable working relationship with president Reagan. Both men Are of Irish ancestry both come from working class families in smaller heartland communities and b9th had successful careers before entering politics and winning National landslides. Canadians have Long complained that Washington pays episodic attention to their country. Canadians seem to cherish american slights president Johnson s introducing Lester b. Pearson As prime minister Wilson or president Carter failing to get a fishing treaty with Canada ratified. Canadians still criticize Washington for its differing priorities on such issues As acid rain. But american attention to Canada is growing. The first foreign trip Reagan took in each of his terms was to Canada something rarely noted there. He elevated Canadian affairs within the state department and pushed the Trade treaty actually Canada s  members in Washington and Ottawa Exchange routine visits while state governors and provincial premiers regularly meet. There Are now 450 pro Grams in Canadian studies at american , 75 percent of whom live within 150 Miles of the United states absorb floods of american news and Cul Ture and millions of canadians Winter in Southern states prompting canadians to think they know americans Only 12 per cent of whom live within 150 Miles of  free Trade has yet to produce free thinking. Diplomats and businessmen complain that wide Canadian exposure to american news produces surprisingly Little understanding. There is a stunning Lack of sophistication said one Ameri can official about How All these Ameri can groups and forces relate and con  the  Government recently arranged financing for Only the fourth chair in american studies at a Canadian  canadians Rugman s research has found students Are the most suspicious. They re idealistic and naive he said. They say big business owns can Ada. Big business is american. Big Busi Ness is pro free Trade. Therefore we re against it " in a sense they Are Correct. According to Rugman 70 percent of american Ca Nadian Trade is done by multinational companies mostly with themselves. A new wrinkle is that now Many of these multinationals Are Canadian and most say their operations Are largely insulated from free Trade problems even should the treaty fail. Canadian officials Hope the International attention of last month s economic Summit conference along with last win Ter s olympics games in Calgary Alberta possibly the 1996 summer olympics in Toronto and Canada s foreign Busi Ness successes will help dispel the stub born sense of vulnerability that lurks in the Canadian psyche like a psychological  mental adjustment is difficult. Generations of Canadian children have been taught that the United states twice invaded Canada and once sacked fort York now Toronto