Canada has always been a trading nation, and commerce remains the engine of its economic growth — Canadians could not maintain their standard of living without trading with other nations. Today Canada has one of the ten largest economies in the world and belongs to the G8 group of leading industrialized countries.
Free tradeA Trading Nation
Free trade has shaped modern Canada. In 1988, Canada enacted free trade with the United States, and Mexico joined in 1994 under the broader North American Free Trade Agreement (NAFTA). By 2008, NAFTA covered over 444 million people and more than $1 trillion in merchandise trade.
Canada enacts free trade with the United States.
Mexico becomes a partner under NAFTA.
Canada sits among the world's largest economies and is part of the G8 group of leading industrialized countries.
Remember this
- The G8 members: the United States, Germany, the United Kingdom, Italy, France, Japan, Russia and Canada.
IndustryThree Main Types of Industries
Canada's economy rests on three main types of industries. Service industries provide thousands of jobs in areas like transportation, education, health care, construction, banking, communications, retail, tourism and government — and now employ more than 75% of working Canadians.
Manufacturing industries make products to sell in Canada and around the world, including paper, high technology equipment, aerospace technology, automobiles, machinery, food and clothing. Natural resource industries — forestry, fishing, agriculture, mining and energy — have played an important part in the country's history and development; many regions still depend on them, and a large share of Canada's exports are natural resource commodities.
Remember this
- Service industries (over 75% of Canadian jobs).
- Manufacturing industries (paper, aerospace, automobiles, machinery).
- Natural resource industries (forestry, fishing, agriculture, mining, energy).
Largest partnerThe Canada-U.S. Trade Relationship
Canada's largest international trading partner is the United States, and each is the other's largest trading partner — together they share the biggest bilateral trading relationship in the world. Over three-quarters of Canadian exports are destined for the U.S.A., and integrated Canada-U.S. supply chains compete with the rest of the world.
Each year Canada exports billions of dollars in energy products, industrial goods, machinery, equipment, automotive, agricultural, fishing and forestry products, and consumer goods. Millions of Canadians and Americans cross what is traditionally known as 'the world's longest undefended border' in safety. At Blaine, Washington, the Peace Arch is inscribed with the words 'children of a common mother' and 'brethren dwelling together in unity,' symbolizing close ties and common interests.
Now put it to the test
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