Canada–U.S. Trade Relationships: Developments and Implications

Abstract

Canada and the United States are the world's largest trading partners. The total volume of two-way merchandise trade in 1985 was $165 billion Canadian ($124 billion U.S.). Canadian dependence on U.S. markets has grown to the point that nearly 80% of our exports are destined for our southern neighbor. By the same token, more than 70% of Canada's imports originate in the U.S. That volume represents 20% of total exports from the U.S., the largest proportion going to any individual country. Obviously, trade relations between Canada and the U.S. are very important to both countries. Indeed, given their combined role in total world trade, the importance of trade relations between them goes beyond whatever it might be to those two countries alone.