Forming a free trade agreement with the United States provided Canadian producers a danger and an opportunity.The danger was that U.S.producers might be more price competitive than Canadian producers; the opportunity was that longer production runs for Canadian producers, made possible by a free trade agreement, would result in cost reductions that would be due to economies of scale.

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The passage states that a free trade agreement with the United States provided Canadian producers with both a danger and an opportunity. The danger was that U.S. producers might be more price competitive, while the opportunity was that longer production runs could result in cost reductions due to economies of scale.

Forming a Free Trade Agreement with the United States Provided