Question Period Note: Canada - U.S Relationship

About

Reference number:
00186-2019
Date received:
Dec 6, 2019
Organization:
Global Affairs Canada
Name of Minister:
Freeland, Chrystia (Hon.)
Title of Minister:
Deputy Prime Minister

Issue/Question:

Canada's overall relationship with the United States

Suggested Response:

• No two nations depend more on each other for their mutual prosperity and security than Canada and the United States. By working together we make our hemisphere a safer and more secure place.

• As the Prime Minister has said, the relationship between Canada and the U.S. is deep and goes far beyond the relationship of any one government.

• It takes a concerted effort by all levels of government to maintain that relationship, including by members of the House. Since 2017, the PM, Cabinet members, Premiers and Parliamentarians have undertaken over 530 meetings with U.S. officials to advocate for Canadian interests.

• We also closely cooperate to ensure the safety and security of the 8,900 kilometre-long border. This past summer we implemented new Entry/Exit and preclearance provisions that stregthen the integrity of our border while ensuring the efficient movement of people and goods.

Background:

In 2018, $499 billion worth of Canadian goods and services exports (71 percent of Canada's total exports) went to the United States. Canada imported $469 billion of goods and services (62 percent of total imports) from the United States, making us its largest single export market. Canadian foreign direct investment (FDI) in the United States is $595 billion (13 percent of total - the second largest source of cumulative FDI in the United States). American FDI in Canada is $406 billion (largest source -46%- of FDI in Canada). Canada is the largest, most secure, foreign source of energy for the U.S. (including oil, natural gas and hydro-electricity. In 2017, over 90% of Canadian energy exports were destined for the United Sates, totalling $102 billion. Canada supplies 21% of U.S. oil demand, 11% of natural gas consumption, and 2% of electricity demand (Statistics in Canadian Dollars).

The Canada-United States-Mexico Agreement (CUSMA), was signed on November 30, 2018, and current efforts are focused on domestic ratification. In the U.S., timelines for ratification remain unclear, with House Democrats calling for changes to the Agreement in the areas of enforceability, worker protections, environmental protections, and access to affordable medicines. In Mexico, the Agreement was approved by the Senate on June 19, 2019. Should changes be made to the Agreement, Mexico may need to revisit certain aspects of its domestic process, including a vote by the Senate.

Border: Ensuring a safe and secure border for the efficient movement of people and goods is a key pillar of Canada-U.S. cooperation. This includes preclearance, used by approximately 15 million travellers every year, and the entry-exit initiative, involving the exchange of arriving traveller information through a land border crossing. A new entry-exit agreement allows Canada and the U.S. to exchange basic biographic information at the border.

Additional Information:

None