The U.S. and Canada are each other’s number 1 customer. This means our trade is so deeply integrated and co-dependent that any change in the way we do business with each other would have signicant impacts on both sides of the border.
CONSIDER THE FACTS TODAY:
Canada is the #1 customer in the majority of American states, and ranks as a top three customer in 48 of 50 states.
This means that more than 15% of all American goods and services sold in the world are bought by Canadians. The U.S. is Canada’s top export market with 72% of all goods and services sold there. The U.S. is the largest market for all of our 10 provinces and 1 territory.
The sales of goods and services to our largest trade partner supported more than 2.5 million jobs in Canada in 2015.
The sales of American goods and services into Canada + their direct investment supported 2.3 million American jobs in 2015.
Almost 5 million people in North America (1% of the total population) have jobs thanks to the robust trade between Canada and the U.S.
64% of all products and services produced and sold between Canada and the U.S. contains components or raw materials sourced from each country.
For every $1 of product that Canada sells to the United States, 30 cents of the raw material or components are American.
Just one example: vehicles manufactured in Canada and shipped to the U.S. contain 48% American components on average.
We use American raw materials and components in the majority of everything we sell which puts 30 cents back into the pockets of U.S. consumers for every $1 they spend.
The U.S. ran a small surplus of $US6 billion with its trade to Canada in 2015 compared to a deficit of $US334 billion with China and a deficit of $US58 million with Mexico.
Like our trade in goods and services, the U.S. is the first stop when Canadians want to establish operations outside of Canada.
Likewise, Canada is the second destination for American companies looking to invest outside their borders.
We invest in each other’s economies it’s a win win for both sides.
With our economies so deeply intertwined, it’s important for companies on both sides of the border to examine the different scenarios and how each outcome might impact your business. To prepare for changes and continue to succeed in the market, read our article on trade strategies.