📈 Chapter 9: Canada's Economy
9.3.1 The Canada-U.S. Trading Relationship
2 paragraphs · 4 questions
Canada and the United States are close neighbours and close trading partners. Each country is the other's largest trading partner. In 2012, over three-quarters of everything Canada exported was headed for the United States. Together the two nations form the biggest two-way trading relationship found anywhere in the world. Businesses on both sides of the border work inside the same supply chains, and those joined-up supply chains compete against producers in the rest of the world.
Key Facts
- Canada and the U.S. are each other's largest trading partner
- Over three-quarters of Canadian exports went to the U.S. (2012 figure)
- The biggest bilateral trading relationship in the world
- Canada-U.S. supply chains are integrated
Every year Canada sells billions of dollars of goods to the United States. Energy products form a major part of that trade. Industrial goods, machinery and equipment are also sold in large amounts. Automotive products move across the border constantly. Farm produce, fish and forestry products go south as well, and so do consumer goods. The list is wide, taking in energy, factories, farms, fisheries and forests alike. That range shows how deeply the two economies are tied together.
Key Facts
- Canada exports billions of dollars of goods to the U.S. each year
- Exports include energy products, machinery and equipment
- Also automotive, agricultural, fishing and forestry products
- Industrial goods and consumer goods are traded too
Test yourself on this topic
4 practice questions from “The Canada-U.S. Trading Relationship”, each with the answer explained.
- What share of Canadian exports is destined for the United States?
- How large is trade between Canada and the United States?
- How do integrated Canada-U.S. supply chains operate?
- Which of these does Canada export in large amounts every year?
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