The agreement between the two countries eventually resulted in a largely decommissioning trade zone between them and eliminated most of the remaining tariffs, while tariffs were only a small part of the free trade agreement. In the 1980s, the average tariff on goods crossing the border was well below 1%. Instead, Canada wanted unfettered access to the U.S. economy. The Americans, on the other hand, wanted access to Canada`s energy and cultural industries. (a) U.S. customs territory, including the 50 U.S. states, the District of Columbia and Puerto Rico, in the mid-1990s, but the Canadian dollar fell to a record high against the U.S. dollar. Cheaper Canadian primary products, such as wood and oil, could be purchased duty-free by the Americans, and Hollywood studios sent their crews to make many films in Canada because of the cheap Canadian dollar (see Runaway Production and Hollywood North). The removal of protective tariffs meant that market forces, such as monetary values, had a greater impact on the economies of both countries than on tariffs. From 1935 to 1980, the two nations concluded a series of bilateral trade agreements that sharply reduced tariffs in both countries.
 The most important of these agreements was the 1960s automotive trade agreement (also known as the auto pact).   The implementation legislation was deferred to the Senate, which had a majority of the Liberal Party. In part in response to these delays, Mulroney declared an election in 1988. The trade agreement was by far the most important theme of the campaign, leading some to call it «free trade». It was the first Canadian election to make major third-party election advertisements, where supporters and opponents used lobbyists to buy television advertising. (c) substantial liberalisation of investment conditions within this free trade area; For investigations into disputes between foreign investors and host countries, see the Law Library`s Guide to International Investment Law. For research on cross-border commercial disputes between private parties, see the Law Library`s Guide to International Commercial Arbitration. U.S. President Ronald Reagan welcomed the Canadian initiative and the U.S. Congress gave the President the power to sign a free trade agreement with Canada, subject to congressional revision until October 5, 1987.
In May 1986, Canadian and U.S. negotiators began developing a trade agreement. The Canadian team was led by former Deputy Finance Minister Simon Reisman and Peter O. Murphy, former U.S. Deputy Trade Representative in Geneva. The agreement has failed to liberalize trade in some areas, particularly the ongoing dispute over coniferous timber.