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Abstract
Canada and the United States may be the two countries
with the greatest degree of cultural similarity and degree of
economic integration in the world , yet they continue to
have significant trade problems. Many of these problems
involve commodities important to rural areas, such as lumber,
grains, and livestock. Despite similar policies to assist
rural areas, at the root of the trade problems between the
two countries, there are fundamental differences in how
each society perceives the role of markets and the role of
government in those markets. With domestic rural policies
being challenged as inconsistent with formal trade agreements,
these philosophical differences are becoming
increasingly clear. To reap the full benefit of trade liberalization,
these differences must be resolved.