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Reasons for Membership

The following section will examine reasons for Canada’s membership in the G8. Topics discussed will include:

• Canada as an Economic Power
• Canada’s International Connections
• Internal Politics of the G8
• Importance of the G8 to Canada

Canada as an Economic Power

The G8 is primarily an economic forum of leading industrialized countries. The G8's purpose has always been the growth and maintenance of the global economy and international financial and trade systems.

The G8's economic focus is one reason for Canada’s membership. While lacking in military and international political power, Canada does have a high economic status in the world.

• Gross Domestic Product (GDP)

  • Since the 1970s, Canada has been one of the G8's fastest growing economies. Canada’s GDP and volume of trade is close to other G8 countries such as Italy and the United Kingdom.
     

• Global Trade

  • Canada is a premier producer and exporter of natural resources, and a large exporter of manufactured goods. Canada shares with the United States the largest two-way trading relationship in history.
     

• Global Investment and Capital

  • Canada is a large exporter and importer of capital and investment. Canada is also home to many of the largest industrial companies and multinational corporations in the world.

Canada’s International Connections

The G8 is not a formal international institution, but an informal forum where members are able to discuss world issues. G8 members use other international institutions (such as the World Bank, IMF or United Nations) to implement policies made at G8 Summits.

The G8’s dependence on other international institutions is another reason for Canada’s membership. Canada is one of the most well connected nation-states in the world community.

• Economic Connections

  • Canada has membership in the World Bank, the International Monetary Fund (IMF), the World Trade Organization (WTO), the North American Free Trade Agreement (NAFTA), the Asian Pacific Economic Community (APEC), and strong economic ties with most of the G8 members.
     

• Political and Security Connections

  • Canada has membership in the United Nations, North Atlantic Treaty Organization (NATO), NORAD, and military operational compatibility with the United States.
     

• Cultural Connections

  • Canada has membership in a variety of international cultural institutions, such as the Commonwealth and la francophonie. As a non-colonizing country, Canada also has relatively strong relations with African and Asian countries.

Internal Politics of the G8

The internal politics of the G8 is a further reason for Canada’s membership. Prior to Canada’s inclusion, European countries numerically dominated the group. It consisted of four European countries (UK, France, West Germany and Italy), one North American country (the US), and one Asian country (Japan). With the inclusion of Canada, a greater numerical balance was achieved between European and non-European members.

This balance was especially important to the United States, who had strong political and economic ties with Canada, and saw Canada as a possible ally against European members. Canadian membership was insisted upon by the United States, while being resisted by France who feared Canada would side with the United States on all of the important issues (Timothy Heeney, Canadian Foreign Policy and the Seven Power Summits). However, it should be noted that Canada has not been the staunch American ally that many had envisioned.

Importance of the G8 to Canada

Membership in the G8 is very important to Canada. Indeed, Canada lobbied extensively to be included in the G8. It is important for several reasons:

• Canadian Economy

  • Membership in the G8 is very important to Canada's economic stability and growth. The Canadian economy is heavily dependent upon the international trade and finance systems. Therefore, with G8 membership, Canada actively participates in setting policy in international economic affairs.

• Canadian Foreign Policy

  • G8 membership is very important regarding how Canada carries out its foreign policy and its world community status. Over time, Canada has been able to make progress on important Canadian issues such as freer international trade, controlled capital liberalization, the environment, African development and Third World debt.

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Canada's Role

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