Canada has always lived by trade, and commerce is still the engine that drives its growth — without trading abroad, Canadians could not keep up their standard of living. Today Canada ranks among the ten largest economies in the world, belongs to the G8, and shares with the United States the biggest two-way trading relationship anywhere.
Free tradeA Trading Nation
Modern Canada was shaped by free trade. In 1988 Canada brought in free trade with the United States; in 1994 Mexico joined and the deal widened into the North American Free Trade Agreement (NAFTA). By 2008 the NAFTA zone held more than 444 million people and moved over $1 trillion in merchandise trade.
Free trade between Canada and the United States takes effect.
Mexico joins; the partnership becomes NAFTA.
NAFTA covers over 444 million people and $1 trillion+ in merchandise trade.
Remember this
- Commerce is the engine of Canada’s economic growth.
- Canada’s standard of living depends on trade with other nations.
- 1988 — free trade with the U.S.; 1994 — Mexico joins under NAFTA.
World standingOne of the World’s Largest Economies
Canada’s economy is among the ten largest on the planet and a member of the G8, the club of leading industrialized nations. Its seven fellow members are Russia, Japan, France, Italy, the United Kingdom, Germany and the United States.
Remember this
- Canada’s economy: among the world’s ten largest.
- G8 = Canada + United States, Germany, United Kingdom, Italy, France, Japan, Russia.
IndustryThree Main Types of Industries
Canada’s economy rests on three kinds of industry: service, manufacturing and natural resources. Service industries are by far the biggest employer — more than 75% of working Canadians hold service jobs, in fields such as banking, health care, education, transportation, construction, communications, retail, tourism and government.
Manufacturing industries produce goods for sale at home and abroad — automobiles, machinery, paper, food and clothing, high technology gear and aerospace technology. Natural resources industries — forestry, fishing, agriculture, mining and energy — have been central to Canada’s history and development; many regions still depend on them, and resource commodities make up a large share of Canada’s exports.
Remember this
- Service industries — over 75% of Canadian jobs (health care, education, banking, retail, tourism, government…).
- Manufacturing — automobiles, machinery, paper, aerospace and high-tech equipment, food, clothing.
- Natural resources — forestry, fishing, agriculture, mining, energy; a large share of exports.
- Largest international trading partner: the United States.
Largest partnerThe Canada–U.S. Trade Relationship
Canada and the United States are each other’s largest trading partner, and together they form the world’s biggest bilateral trading relationship. Over three-quarters of Canada’s exports go to the U.S.A., and supply chains integrated across the border compete as one against the rest of the world.
Each year Canada sells billions of dollars’ worth of goods abroad: energy, industrial goods, machinery and equipment, cars and parts, farm, fish and forest products, and consumer goods.
Remember this
- Over three-quarters of Canadian exports go to the United States.
- Canada–U.S.: the world’s biggest bilateral trading relationship.
- Canada and the U.S. are each other’s largest trading partner.
Shared borderThe Undefended Border and the Peace Arch
Millions of Canadians and Americans cross safely each year over what is traditionally called “the world’s longest undefended border.” The Peace Arch, at Blaine in Washington State, stands as a symbol of the two countries’ close ties and common interests. It carries two inscriptions: “children of a common mother” and “brethren dwelling together in unity.”
Remember this
- Canada–U.S. border: “the world’s longest undefended border.”
- Peace Arch — at Blaine, Washington.
- Inscriptions: “children of a common mother”, “brethren dwelling together in unity.”
Now put it to the test
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