Saturday , 17 February 2018

NAFTA: The Major Imports & Exports Between the U.S. & Canada Are Surprising

Canada and the United States are the world’s largest trading partners. The U.S. accounts for about three-quarters of Canada’s exports. Because of geography and the North American Free Trade Agreement [NAFTA], there are a number of products that the countries export to each other while at the same time importing from the other. [Take a look at the list. You might be very surprised.]

1. Crude oil and petroleum
Canada to the U.S.

Canada’s largest export to the U.S., by far, is crude oil with the vast majority coming from Alberta’s oil sands to the Western and Southern U.S.

2. Crude oil and petroleum
U.S. to Canada

Because of the distances, it is cheaper for Eastern Canada to import oil through the U.S. eastern seaboard than to get it from Western Canada.

3. Vehicles
Canada to the U.S.

Combining the large and medium-sized passenger vehicle categories, car exports make up approx. 13% of Canadian exports. Canada’s automobile-related exports are a legacy of the Auto Pact under which American car companies set up plants in Canada and parts were shipped back and forth across the border.

4. Vehicles
U.S. to Canada

The largest portion of U.S. exports to Canada is related to cars –  small trucks, large and medium-sized passenger vehicles, gearboxes, engines and car body parts. The Auto Pact between the two countries was cancelled more than a decade ago, but its effect is still evident. Different car plants are tooled for different makes and models meaning that the finished products often have to be shipped across the border to meet the other country’s demand.

5. Natural gas
Canada to the U.S.

Like oil, most of the natural gas is produced in Alberta. Using a similar distribution pattern as oil, Canadian exports go from Alberta into the Western and Southern U.S.

6. Natural gas
U.S. to Canada

Most of the U.S. exports to Canada go into Ontario. U.S. domestic production has increased recently, reducing the amount of Canadian imports.

7. Potassium chloride
Canada to U.S.

Potassium chloride is found in potash, which is used to make the world’s fertilizers. Saskatchewan is the second largest producer of potash in the world.

8. Aircraft and spacecraft
U.S. to Canada

Planes, satellites and other flying vehicles and their parts…

9. Gold
Canada to U.S.

Canada is a major exporter to the U.S. of non-monetary gold – bullion, powder or any other semi-manufactured form. It does not include watches or jewelry. Although the United States is a net exporter of gold, much of its production depends on higher prices for gold to make it profitable.

10. Wood
Canada to the U.S.

Canada is the United State’s main supplier of wood.

The comments above are edited ([ ]) and abridged (…) excerpts from the original article

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  1. This is contrary to Trump’s policy, but now the US deficit in trade with Canada is only growing.

    US trade deficit with Canada in the 1st quarter of 2017 was $8.8 billion, a 81.77% increase ($3.9 billion) over the 1st quarter of 2016. Source:

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