Canada’s Trade with the U.S: Key Facts
Canada and the United States share one of the largest trading relationships in the world. From energy and agriculture to manufacturing and services, this partnership has shaped both economies for decades. Let’s take a closer look at the key facts and figures behind this crucial trade relationship.
1. Canada’s #1 Trading Partner
The U.S. is by far Canada’s largest trading partner, accounting for approximately 75% of Canada’s exports. Every day, goods and services worth over $2 billion CAD flow across the border.
2. Top Canadian Exports to the U.S.
Key exports include:
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Energy products (oil, natural gas, electricity)
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Automobiles and auto parts
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Forestry products (lumber, paper)
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Agricultural goods (wheat, canola, beef)
3. Top Canadian Imports from the U.S.
Canada also imports a significant amount from the U.S., including:
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Machinery and equipment
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Consumer goods
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Electronics
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Chemicals and plastics
4. NAFTA & USMCA Agreements
The long-standing trade framework was originally the North American Free Trade Agreement (NAFTA), which was replaced by the United States-Mexico-Canada Agreement (USMCA) in 2020, updating rules around auto manufacturing, dairy, and digital trade.
5. Key Trade Disputes Over the Years
Despite strong trade ties, disputes arise frequently:
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Softwood lumber tariffs
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Steel and aluminum tariffs
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Agricultural product disagreements (dairy, poultry)
These disputes have significant economic and political impacts, making trade policy a hot-button issue during elections.
6. The Trade Relationship’s Impact on Jobs
Millions of Canadian jobs are tied to trade with the U.S., particularly in industries like manufacturing, transportation, and agriculture. Any changes in trade agreements or tariffs can directly affect employment.
Final Thoughts:
The Canada-U.S. trade relationship is vital to both countries’ economies. As elections and political shifts occur, understanding these key facts helps Canadians grasp why trade policy is so important.
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