Canada-U.S. Free Trade and Price Convergence in North America

Would Borderless North America Kill Canadian Culture?

“…There is corroborating evidence, by economists Steven Globerman and Paul Storer, (Globerman and Storer, 2004) of a failure of price convergence between Canada and the United States, which might suggest that the border is still a significant trade barrier (although these authors stress that it is volatility in the exchange rate which accounts for most of the non-convergence). This obliquely raises yet another deep integration issue: movement to a common currency (or outright "dollarization" in Canada), which we d o not pursue at length here, except to point out that there is much debate among Canadian academics, although notably not much among policy-makers, of the costs and benefits to Canada of monetary integration with the United States."…”