Question Period Note: Canada-U.S. Commercial relations

The Canadian and U.S. economies are deeply integrated with the U.S. being Canada's top trading partner, largest source of foreign direct investment, and primary export market across several key sector

· Canada and the U.S. share the world's most integrated and mutually beneficial trade partnership, exchanging nearly $3.6 billion in goods and services daily.

» · Nearly 8 million U.S. jobs depend on trade with Canada, while 2.6 million Canadian jobs depend on exports to the U.S.

» · The Prime Minister and President Trump have begun defining a new economic and security relationship between Canada and the U.S., rooted in mutual respect and founded on common interests, to deliver transformational benefits for both sovereign nations.

» · U.S. tariffs against Canada hurt American consumers and American manufacturers.

» · We will continue to work to maintain CUSMA benefits, mitigate future tariff threats, and secure market access for Canadian exports to the United States.

Canada and the United States have shared one of the world's most integrated and beneficial bilateral economic relationships. This relationship has been shaped over decades through free trade agreements, most recently the Canada-United States-Mexico Agreement (CUSMA), referred to as USMCA in the U.S., in force since July 2020. Canada remains strongly committed to preserving and strengthening this trilateral framework with Mexico and the United States as the foundation for North American economic competitiveness. CUSMA has supported North American trade and investment integration and facilitated regional economic growth. However, the current administration's shift towards more aggressive, protectionist trade policies--as exemplified by its various tariff measures-- has taken Canada-U.S. relations to a low point and poses significant risk to Canada's economy.
The United States is Canada's top trading partner, main export destination, and largest source of foreign direct investment (FDI). Key Canadian export sectors include automotive, defence, agriculture and agri-food, information and communication technologies, and life sciences. In 2023, Canada was the second-largest source of FDI in the U.S. and remained its top foreign energy supplier.
Over 70% of Canadian companies choose the U.S. as their first export destination. The success these companies achieve in the U.S. market often serves as a springboard for exploring additional export opportunities in other international markets. Approximately 70.3% of Canadian exports go to the U.S., with over 70% of those being used in U.S. manufacturing. Nearly 8 million U.S. jobs depend on trade with Canada, while 2.6 million Canadian jobs depend on exports with the U.S.
Despite the growing challenges in the bilateral trade relationship, Canadian firms are expected to continue prioritizing the U.S. market due to geographic proximity and cultural ties.

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