The American effect

A closer look at Canada’s sovereignty in relation to the U.S

Canada’s proximity to the United States lays the foundation for economic annexation; a reality that feels both inevitable and unnervingly seamless. Sharing the world’s longest land border—spanning 8,891 kilometers—Canada is the only developed country so closely tethered to a neighboring superpower. With three quarters of Canadians living within 150 miles of the U.S. border, Canada’s proximity from other global powers further reinforces an economic dependence. However, the U.S., with its robust economy, remains far less reliant on Canada in ultimately every sector including media, security, and trade.

Geographic barriers noticeably shape Canadian media, where American-aligned narratives dominate influential Western media giants, like CNN, as well as U.S.-based social media platforms like Instagram and Facebook. Though the government has tried to address this imbalance, such efforts have met resistance. A prime example is Canada’s Online News Act (Bill C-18) of 2023 which requires major digital platforms to negotiate compensation agreements with Canadian news organizations. Instead of complying with the law, companies like Meta — Instagram and Facebook’s parent company — chose to block all news content on their services in Canada.

Demographics also play a role in this reliance. Canada, the second-largest country in the world, is ironically among the most sparsely populated. In an attempt to offset the challenges of a decreasing population, Canada’s economy has been heavily dependent on immigration, accounting for nearly 80 percent of its recent population growth. Additionally, U.S. foreign policies fueling instability in regions like the Middle East and Africa create waves of refugees and migrants, who look to Canada as a destination of safety and opportunity. 

The U.S. also acts as a military shield, bearing the financial and logistical burdens of defense infrastructure. Last year, Prime Minister Trudeau received letters from 23 bipartisan U.S. Senators, urging him to increase Canadian defense spending. Canada has remained hesitant in an attempt to prioritize domestic social programs like universal healthcare, which remains a cornerstone of Canadian identity.

The North American Free Trade Agreement (NAFTA) of 1994 significantly diminished Canada’s economic sovereignty with 75 percent of Canadian exports now directed to U.S. markets. The total value of goods and services traded between Canada and the United States exceeds $1.5 trillion USD annually, making it the largest bilateral trade relationship in the world. As a result, Canada’s trade is overwhelmingly directed southward, with provinces like Ontario and Quebec exporting far more to California than to British Columbia—a clear result of economic gravity, where proximity and market size dictate trade patterns regardless of national borders.

Canada’s largest independent asset is its petroleum, being one of the largest producers and exporters of oil in the world. Due to its isolation, Canada has failed to diversify its markets with U.S. imports covering over 97 percent of annual oil exports, valued at approximately $60 billion USD. This heavy reliance on the U.S. extends beyond oil, as 46 percent of Canada’s foreign direct investment (FDI) is tied to the U.S.—a figure that is unprecedented. With 75 percent of trade exports destined for the U.S. and 20 percent of Canada’s GDP tied to the U.S., Canada’s level of trade dependency is uncommon among developed countries and unmatched among G7 nations.

Canada’s foreign policy has been directly influenced by bilateral relations with the U.S. for decades. Therefore, U.S. interests often dictate Canada’s decisions, most notably within key organizations like NATO and the UN. Despite their reputation as a global peacekeeper, Canada’s reliance on America has undoubtedly shaped its foreign policy, consistently prioritizing American interests over the needs of its largely immigrant population.

Olivia Haill – Argosy Illustrator

Though it rarely gets reported, due to America’s grasp on our media—Canada’s sovereignty has been under attack for decades as a consequence of its proximity to the U.S. While Canada maintains formal sovereignty, the influence of the U.S. continues to limit its ability to act independently. If the U.S. were to reduce relations with Canada, the repercussions on Canada’s economy would be substantial. With Trump’s presidency blurring the line between allyship and annexation, Canadians are beginning to raise questions about the long-term sustainability of such an economically unbalanced partnership.



One Response

  1. It is time for Canada to start selling our energy to China , India and others
    Also I would threaten that Canada join BRICS as its world wide curt hence no longer dependent on the US Dollar
    Also strange that our friend and ally contravenes our sovereignty to the Arctic more than other countries
    I think it is time to find new “friends”

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