Trade and Transportation: The Impact of the 1995 Transborder Air Services Accord

For most of the post-war period, Canada and the United States have utilized an open regime to govern trade relations between the two countries. Such has not always been the case for transborder air services, however. In 1966, the two countries signed an air services accord (ASA) that governed commercial air services between the two. The 1966 accord was quite restrictive, limiting entry and price competition in transborder markets. This restrictive agreement governed Canada-U.S. air service for almost 30 years, finally being replaced in 1995 with a new ASA that has granted entry and pricing freedom in transborder markets.