The Cold War improved the relations between Canada and the United States, although the relations were strained at times. The common interests between the nations during the Cold War united the two countries and increased cooperation.

     In August 1958, the two countries signed an agreement for joint air defence (NORAD), which would detect Soviet missiles coming from the Arctic (shortest route between the USSR and USA) and aircraft. They then signed the Defence Production Sharing Program. They worked together to build NORAD bases in North America, sharing military parts and working together against Soviet spies. Prime Minister Diefenbaker and President Eisenhower were both committed to defending North America and worked well together.

     However, when Kennedy became the new President in 1961, tensions between Diefenbaker and Kennedy grew. They disliked each other and had different policies. Although the two countries had a common enemy, there were many points of tension between the two. The Bomarc Missile Crisis occurs in the 1960s when Canada refused to set up nuclear missiles in its land. In 1958, Canada and America set up 56 American-made Bomarc missiles in North Bay, Ontario and La Macaza, Quebec. This missiles were to replace the Avro Arrow, the fastest fighter plane at the time which was made in Canada, and to intercept Soviet missiles. The Avro Arrow was scrapped as Diefenbaker considered them obsolete and desired to create missiles instead. The Canadian public didn’t know they were to be equipped with nuclear missiles with 1960, which lead to massive controversy. In 1969, Prime Minister Trudeau announced that Canada would withdraw from the nuclear program and signed the Nuclear Non-Proliferation Agreement in 1970, which limits nuclear weapons in the countries signing it. Another major strain in the relationship was the Vietnam War. Prime Minister Pearson publicly denounced America and it’s policies in Vietnam. President Johnson is reported to have grabbed Pearson’s coat and shout at him the next day when Johnston found out that Pearson disapproved of the war. There were other events that deteriorated relations such as Diefenbaker refusing to back Kennedy in the Cuban Missile Crisis, the Massey Commision which was aimed to stop the influence of America over Canadian culture and the group of programs designed to hit America economically (Canadian Development Corporation, Foreign Investment Review Agency and the National Energy Program). These 3 programs were designed to increase Canadian control over its industries (specifically oil) and to decrease American takeovers of Canadian businesses.

     Overall, the common enemy brought the two nations together and kept relatively good relations, although the two countries had different policies which to strains between the two. The Soviet Union and fear of communism caused Canada and America to work together as much as possible despite their difference policies and economic situations.

     The role of America in Canada’s economy was similar in earlier years. America’s manufacturing industries had already begun creating branch plants in the 1920s to serve the Canadian market, although not at the massive scale as it was during post-WW2. American mining companies set up plants in Canada to collect gold and other resources, similar to how America had a large foothold in Canada’s fossil fuels in the Cold War era. America’s massive role in Canada’s economy in earlier years was also shown by the Great Depression. When the stock market in Wall Street crashed, America’s economy entered a depression which caused Canada and others in the world to enter one as well. Canada suffered as much as, if not worse, than America due to the depression. Because of the stock market crash, trade between America and Canada shrunk, putting thousands out of work.