The Economic Impact of US-Canada Trade

 The United States (US) and Canada have a specific connection. Strong personal relationships, shared location, shared values, mutual interests, and deep, diversified economic ties serve as the foundation for Canada-United States cooperation. Our two countries have a strong and long-standing defense and national security cooperation that offers more protection than either could provide on its own. Trade and investment between the United States and Canada provide millions of jobs while also assuring the safe and efficient flow of people and goods across borders, which is vital to both nations' economic growth and competitiveness. The Canada-United States-Mexico Agreement (CUSMA)Footnote1 strengthens Canada's close trade ties with the United States and Mexico, while benefiting all three countries greatly economically.

Canada has three trade offices, fourteen honorary consuls, an embassy in Washington, DC, and consulates general in Atlanta, Boston, Chicago, Dallas, Denver, Detroit, Los Angeles, Miami, Minneapolis, New York, San Francisco, and Seattle. In addition to its embassy in Ottawa, the United States has general consulates across Canada Roadmap, joint declarations, and more pledges by leaders In March 2023, US President Joe Biden paid a personal visit to Canadian Prime Minister Justin Trudeau for the first time since gaining office. The joint statement published by the two presidents went beyond what was specified in the 2021 Roadmap for a Renewed Canada-United States Partnership.

These commitments included accelerating the transition to clean energy, safeguarding the Arctic and common waters

strengthening North American supply chains for essential minerals and semiconductors, promoting diversity and inclusion, and supporting international alliances against threats to the global order. Over a hundred Leader-level agreements serve as a model for developing the new green economy. Among these include increased domestic, international, and bilateral cooperation between the United States and Canada, as well as initiatives by the Deputy Prime Minister's newly formed Energy Transformation Task Force.Our bilateral relationships with NATO, the North American Aerospace Defence Command (NORAD), the North Atlantic Treaty Organization (NATO), and the Five Eyes include the whole gamut of defense and national security cooperation.

Collaboration across borders. The United States and Canada share the world's longest international border, which is around 9,000 kilometers. The boundary is shared by one territory, seven Canadian provinces, and thirteen American states. Two out of every three Canadians live 100 kilometers or less from the border. Our two countries collaborate closely to protect and secure our shared border. Officials from the United States and Canada work closely together to maintain the safe and efficient flow of people and goods across the border, which is important to both countries' economic competitiveness and prosperity. An estimated 800,000 Canadians live in the United States, with 400,000 individuals crossing the border every day. Many Native American tribes in the United States and Canada have communities and customs that span the border. Collaboration between defense and security

This involves sharing intelligence, collaborating on defense materials, and strengthening links among law enforcement authorities

Recently, the United States and Canada agreed to accelerate NORAD modernization. Along with previously announced investments in NORAD and the Canadian Armed Forces, which support continental defense in general (including F-35 fighter jets and related infrastructure), Canada is collaborating with the United States to reduce cross-border firearms violence, child sex exploitation, violent extremism, and cross-border smuggling. Furthermore, Canada is stepping up cybersecurity cooperation with the United States to improve the resilience and security of our critical infrastructure. Canada and the United States continue close cooperation on international security issues, particularly in Europe through NATO and the bolstering of Ukrainian security forces, and in the Middle East through the Global Coalition against Daesh. In addition to undertaking illegal trafficking operations in the Caribbean Sea and eastern Pacific Ocean, Canada and the United States maintain a naval presence and impose sanctions across the Indo-Pacific area. Exchange The United States and Canada create the world's largest trading partnership, which supports millions of employment.Canada and the United States are heavily reliant on one another for imported energy. Our bilateral energy trade was valued at $213.7 billion in 2023. In 2022, Canada's energy trade surplus is expected to be $166.7 billion.

Energy-related goods account for more than a third of Canada's total merchandise exports to the United States. Transboundary infrastructure, which includes over 100 natural gas and oil pipelines, as well as clean electricity transmission lines, is essential for large-scale energy transfers across countries, enhancing trade, employment, and consumer spending. Crude oil is transferred to the United States via a transboundary pipeline and accounts for the vast majority of our bilateral energy trade. By exporting clean electricity, Canada helps the United States reach pollution reduction targets in regions like New England and New York. We are each other's largest trading partners, with an anticipated $3.6 billion in products and services crossing the border each day by 2023. Because many things require collaborative development and investment, our networks are intricately linked. The investment relationship between the US and Canada remains strong. By the end of 2022, the United States was the largest investor in Canada, with Canada receiving the majority of FDI into the United States. Furthermore, Canada is the single largest source of foreign energy for the United States.

The Canada-United States-Mexico Agreement (CUSMA), which took effect in July 2020

is the most recent of numerous free trade agreements that have governed trade between the United States and Canada for over 40 years. CUSMA, which is built on robust and effective supply networks that span all major economic domains, serves as the foundation of our resilient and equitable trading relationship with both the United States and Mexico.The United States and Canada work closely on climate and environmental issues. By assuring legislative convergence across interrelated sectors, Canada and the United States have hastened the transition to zero-emission vehicles, decreased methane emissions, developed a crucial minerals supply chain, and moved closer to achieving net-zero energy. Canada and the United States continue to strive for regulatory and policy convergence through platforms such as the High-Level Ministerial Dialogue on Climate Ambition. Furthermore, they work together in global venues to promote forceful climate action.

Canada has pledged $420 million over 10 years to preserve and restore the Great Lakes, preventing and mitigating environmental disasters, preserving biodiversity, and protecting fragile ecosystems. Furthermore, the United States and Canada have enhanced their cooperation in the Arctic, and President Biden's visit in 2023 will include a technical study and assessment of the 1991 Canada-US Air Quality Agreement. When the United States and Canada announced the Renewed Canada-United States commitment on climate and natural ambition at COP28 in December 2023, they promised to step up and renew their collaborative efforts to address the climate issue while also enhancing the economic benefits of collaboration. This includes maintaining agreements to use renewable energy, reduce methane emissions, protect the environment and oceans, and preserve species. Energy security The scope and importance of the US-Canada energy alliance have a substantial impact on North America's energy supply, security, and transition.