	study says u s canada pact would spur economies a free  pact between the united states and canada could spur the economies of both sides substantially according to a study released by the institute for international economics the study by paul wonnacott said a successful conclusion to the free  talks now under way could raise canada s gross national product by more than five pct and expand u s export s by about seven pct he said the pact could resolve the knotty issue of government subsidies end curbs on  in services and investments and pave the way for new global talks under the general agreement on tariffs and  the united states and canada the world s two biggest trading partners with cross border shipments of about billion dlrs a year opened free  talks last june they are aiming for a pact by next october wonnacott an economics professor at the univerity of maryland said an agreement should include elimination of tariffs between the two countries phased in over a five to year period equal access to federal government procurement in the two countries replacing current buy america and buy canada provisions with a buy north america provision fewer restrictions in  in services chiefly finance and transportation a commitment not to screen foreign investments in favor domestic producers a commission to resolve bilateral  disputes wonnacott said that to resolve the subsidy problem the two sides should permit export subsidies of exports of up to or pct without imposing coutervailing duties the limit on subsidies is now pct he proposed that any attempt to impose new duties to offset subsidies should go first a special disputes commission for resolution at an early stage wonnacott said bilateral free  would contribute to the efficiency of the north american economies and to their competitiveness in facing overseas producers he said it would it would open u s markets to canadian goods and enable them to benefit from the economies of mass production benefits to the united states would be fewer than those to canada proportionately he said because of the already large u s gross national product wonnacott said also that a u s canada pact in such areas as export subsidies and the creation of a dispute commission could set an example for the current attempt by gatt to write new and more liberal global trading regulations reuter 
