Canada An Update on the Bilateral Trade-Relationship

The United States and Canada have an exceedingly high level of trade, as both countries are each other’s top trading partners, with the total transaction in 2021 accumulating to USD 763 billion. The two countries heavily rely on each other economically, as Canada is the top export destination for 31 U.S. states, and 72% of Canadian exports are shipped to the United States. Canada is the second-largest amount of foreign direct investment into the United States, and the U.S. is the largest foreign investor for Canada. Leading sectors for U.S. exports include aerospace & defense, education & training, agriculture, automotive, energy, information & communications technology, and medical devices. 

The U.S. and Canada are strong allies politically and economically. In February of 2021, President Biden and Prime Minister Trudeau launched the Roadmap for the Renewed U.S.-Canada Partnership. Consequently, the two countries are collaborating to counter many of the most pressing current global issues, such as combatting Covid-19, climate change, and the negative economic effects of the pandemic.

U.S. companies enjoy ease of doing business in Canada, as both countries share the world’s longest border and a common language, have a highly developed market economy, and share similar consumer preferences and spending power (GDP per capita is, USD 69K for Americans and USD 52K for Canadians).

The Canadian market provides many opportunities for U.S. small businesses to expand into Canada. The Roadmap for the Renewed U.S.-Canada Partnership includes initiatives to accelerate the economic recovery of small and medium-sized enterprises, focusing on women-owned and minority/indigenous-owned. That means that these businesses will receive support for development at the highest levels of the U.S. and Canadian governments.

The U.S. Department of Commerce offices in Canada offers services to assist U.S. firms export to Canada. Over 84% of our clients that use our B2B matching services are SMEs.  A list of services available to U.S. exporters can be found here: Let Our Experts Help  

In summary, Canada’s market presents excellent conditions for U.S. companies to start or grow their business in Canada.  

The U.S. Commercial Service in Canada stands by, ready to assist U.S. firms understand and make contacts in Canada.  For more information, please visit www.trade.gov/Canada or our Country Contacts page to find contact details for our offices in Ottawa, Montreal, Toronto, and Calgary.