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North American Alliances in the Cold War After the Second World War the United States emerged possessing an unprecedented amount of economic and military power With the threat of the Cold War power had shifted from Britain to the United States The Cold War was a period of time from approximately 1945 to 1991 Canadas alliance with the United States during the Cold War was one of necessity This can be seen in the economic crisis the development of NATO and the agreement to NORAD Canada was forced into an alliance out of necessity with the United States as seen from an economic point of view The economic situation in North America at the beginning of the Cold War was favorable Compared to the rest of the world Canada and the United States were financially stable after World War II Canadas trading partners in Western Europe were in ruins and had little money to pay for food raw materials and the manufactured goods needed to re-build their economy Canada decided they needed to trade in a different manner and give the Europeans credits with which to buy Canadian goods By 1947 Canada was forced to realize that because of their generosity they were embarking on a foreign exchange crisis Canada decided to strike a deal with the United States where they would give a loan to Canada and agree to purchase more Canadian goods This agreement was seen as a good action on both accounts With the rest of the world gripped by economic dislocation and possibly prey to communism surely now was the time for the United States and Canada to join economic forces in the interest of both In 1948 the Canadian and American teams met to discuss a free trade agreement The sentiment in Ottawa was clear Prime Minister William Lyon Mackenzie King was leery of the agreements thinking he would go down in history as the
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