In the 1960s, an idea from a US Senator (Javits) was for an "Atlantic Free Trade Area" - even though it was hardly limited to the Atlantic. The proposal, was for a free trade area between: USA, UK, Canada, Australia, New Zealand, Ireland, Denmark, Norway, Sweden.
It came at a time, when the UK was considering it's position with Empire and a possibility of applying for EEC membership, and was investigated by the UK.
My notes on the subject, from Kew Archives in London, from the original report (found here:
http://discovery.nationalarchives.gov.uk/SearchUI/details/D7660471?uri=D7660471 if you want to read yourself or find yourself at Kew, or want to buy it online).
All these are the comments and thoughts of the UK Govt (not mine!):
- 10% of UK exports went to the USA in 1965.
- 25% of UK exports went to other potential AFTA member countries.
- The UK would be scared of losing it's privileged position and trading volume to the USA (from other AFTA members).
- Australia and New Zealand would be reluctant to lower tariffs on industrial goods without reciprocity for agricultural goods at the least - which would be opposed by the agricultural lobby in the USA.
- Canada, Australia, New Zealand would all look to further increase agricultural exports to the UK in the case of AFTA.
- In 1957, Diefenbaker (Canadian PM) spoke with an aim of moving 15% of Canada's imports from the US to the UK.
- In the USA there was limited public, but greater private support for such an AFTA agreement in principle. Probable overall ambivalence to the idea.
- In Canada, there would be interest in an AFTA, given the opportunities it would raise for increasing exports. However, the chief fear was the opportunity that it would give the US to further take hold of Canada's market and companies. The phrase "retaining Canadian political independence" is used. While Canada might not be overly enthralled about an AFTA, if the other countries decided to form one, Canada would almost definitely be forced to join as well as 66% of Canada's exports would be going to AFTA members and therefore be subject to tariffs and greater competition.
- In Australia and New Zealand (which already have a limited FTA between them), both could be interested in such an AFTA. This would largely depend on the scale of the AFTA; 40% of Australia's exports and 70% of NZ's exports would go to AFTA members. Both are currently trying to stimulate a domestic industrial market, therefore granting free trade in this area would need to be compensated with free trade in other areas to the benefit of Australia & NZ (primarily foodstuffs). It is unlikely they would be willing to drop their industrial protection completely immediately; some time would be needed for them to establish industrial activity that could withstand competition from the AFTA. Australia would be concerned that her currently privileged position regarding foodstuff exports to the UK would be threatened by the USA. If Australia and NZ were to join AFTA, they would probably be highly interested in bringing Japan into AFTA as well due to the growing trade links.
- In Ireland, the market is so heavily reliant on the UK market, that if the UK joined, Ireland would also be forced to join. "There is no reason for this to be politically difficult".