The Canada-U.S. Relationship
Canada and the United State have enjoyed a long and enduring relationship. This partnership on a broad range of issues, as well as commercial and interpersonal connections, has strengthened these ties throughout the years. Canada also enjoys friendly relations with Mexico, although both geographic and linguistic barriers have prevented their relationship from blossoming into one with comparable intensity that Canada shares with its biggest and closest neighbor.
U.S. goods and services trade with Canada totaled an estimated $714.1 billion in 2018. Exports were $360.5 billion; imports were $353.6 billion.
The graph below shows the substantial Foreign Direct Investment relationship between Canada and the United States and how heavily the countries rely on each other.
Cumulative Foreign Direct Investment
This graph shows the substantial relationship between Canada and the United States and how heavily the countries rely on each other for merchandise.
United States-Mexico-Canada Agreement
Under the leadership of President Donald J. Trump, the United States has reached an agreement with Mexico and Canada in the renegotiation of the North American Free Trade Agreement (NAFTA). The new United States-Mexico-Canada Agreement (USMCA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. When finalized and implemented, the agreement will create more balanced, reciprocal trade that supports high-paying jobs for Americans and grows the North American economy.
Agreement highlights include:
•Creating a more level playing field for American workers, including improved rules of origin for automobiles, trucks, other products, and disciplines on currency manipulation.
•Benefiting American farmers, ranchers, and agribusinesses by modernizing and strengthening food and agriculture trade in North America.
•Supporting a 21st Century economy through new protections for U.S. intellectual property, and ensuring opportunities for trade in U.S. services.
•New chapters covering Digital Trade, Anticorruption, and Good Regulatory Practices, as well as a chapter devoted to ensuring that Small and Medium Sized Enterprises benefit from the Agreement.
To view the full text of the agreement between the United States, Mexico and Canada signed on November 30, 2018, click here.
While the United States, Mexico, and Canada have concluded a new, rebalanced agreement, NAFTA currently remains in effect. The USMCA can come into effect following the completion of TPA procedures, including a Congressional vote on an implementing bill.
Canada’s Trade Partners
This chart shows the top merchandise trade partners for Canada around the globe.
Imports and Exports by Partner Country
This chart shows the significant partnership between Canada and the United State and the value both countries see in investing in businesses across borders.
Sources: Office of the United States Trade Representative