December 10, 1985
The President today gave formal notification to the Congress of the administration's intention to
enter into negotiations leading to a bilateral free trade arrangement with Canada. The notification,
required under 1984 amendments to section 102 of the Trade Act of 1974, requires 60 days'
notice to the House Committee on Ways and Means and the Senate Committee on Finance.
On September 26, 1985, Canadian Prime Minister Brian Mulroney telephoned the President,
followed by a formal letter proposing that the two governments explore more directly the scope
and prospects for a new trade agreement ``. . . involving the broadest possible package of
mutually beneficial reductions in barriers to trade in goods and services.'' The President thereafter
instructed the United States Trade Representative (USTR), Clayton Yeutter, to begin the process
of informal consultations with the Congress and the private sector. That process having been
completed, Ambassador Yeutter recommended that the President proceed with formal notice.
In his notification letters to the congressional committees, the President emphasized that he
viewed the initiation of negotiations as an opportunity to significantly enhance U.S. efforts to
eliminate trade frictions with Canada. The President also welcomed the Canadian proposal as
consistent with administration and congressional efforts to further open foreign markets for U.S.
exports. ``As you know, Canada is both our largest trading partner and fastest growing export
market, representing one-fifth of our total exports,'' wrote the President.