The United States is our largest trading partner. Nearly
80% of our exports are destined to the USA. This makes
it the most important market for not only Canadian exporters,
but Canadian business in general. Historically, the
enactment of NAFTA has given greater incentive for companies
on both sides to engage in the trade of goods and services.
Although there has been an increase in focusing on emerging
markets, the USA still remains the premier export destination.
Geographic proximity, language and cultural similarities,
and complementary legal and business systems all contribute
to trade. The American Chamber of Commerce in Canada
aims to further enhance this relationship and ‘bridge
borders’ between the two countries.
The
following trade data is aimed at giving businesses a
better picture of the nature of Canadian exports to
the USA. Canada now has the second largest oil reserves
in the world, and thus understandably oil exports are
now dominating the figures. However, the cross-border
auto industry continues as the leading export industry.
Canada-US
industries can be called ‘North American’
industries. This is due to the fact that most industries
are very integrated across the border. Therefore, Canadian
companies regularly ship to US customers, buy from US
suppliers, and attend US trade shows for their industry.
The opposite is also true for US companies.
The
US central bank, known as the Federal Reserve, has been
tightening monetary policy and has increased interest
rates over the past year. In 2006, experts suggest that
rates will now remain at current levels for the remainder
of the year.
For
more information on current US economic indicators and
trade data, please reference the ‘Important
Links’ section of this cd-rom.
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