Dispelling the myth of 'The Big Chill' and its perceived implications for the Canadian economy

After the terrorist attacks in the United States on September 11, 2001, the Canadian media and business community claimed that Canada was losing its access to the United States market because of poor diplomatic relations between the two governments. Specifically the Canadian business community suggested that because of the chilled environment at the apex of the bilateral relationship since the events of September 11, 2001 the United States engaged in a campaign of economic statecraft against Canada. This argument suggests that the Canadian economy was negatively impacted by these conflicting views and policies. This thesis seeks to question these assumptions by analyzing the aggregate trade data for Canada-United States trade and comparing these data with U.S. trade with other major partners. This thesis argues that the empirical evidence shows that after the events of 9/11, Canada did not suffer comparatively any more than any other major trading partner of the United States. This suggests that, while some Canadian businesses may have been affected by the events of 9/11, the Canadian economy as a whole was not affected by the chill in diplomatic relations between the Canadian and American governments following 9/11.