US-Canada Trade A Comprehensive Overview
According to President Biden, Canada is the United States' closest friend, partner, and ally. Over the last 150 years, our two countries have developed one of the most intimate and extended partnerships. Canada is our largest commercial partner, with approximately $2.6 billion in products and services crossing our shared border, the world's longest land border, each day, representing a nearly 20% growth over the previous year in 2022. This trade generates millions of employment on both sides of the border. Our individuals have deep personal and familial bonds, and we have worked together to address some of the world's most important issues.
President Biden's administration has restored trust and confidence between our two countries while reaffirming the United States' longstanding commitment to the US-Canada partnership. The United States-Canada partnership helps not only our people, but the entire world, because teamwork allows us to accomplish anything. The United States and Canada are fostering inclusive economic growth and job creation by increasing private sector investment.
We will employ the Inflation Reduction Act and the CHIPS and Science Act to create integrated supply chains and increase North America's competitiveness
Last year, the United States announced $250 million in Defense Production Act (DPA) financing for American and Canadian companies to mine and process essential minerals for electric vehicles and stationary storage batteries. This April, awards will be given for companies in the United States and Canada. The Canadian Critical Minerals Infrastructure Fund will allocate CAD $1.5 billion to clean energy and transportation infrastructure projects, with an extra CAD $ 1.5 billion available through the Strategic Innovation Fund for advanced manufacturing, processing, and recycling. These bilateral steps will boost the US-Canada collaboration on supply chain resilience. Both countries will work to establish a cross-border semiconductor packaging corridor, with Canada and IBM offering considerable incentives as part of a memorandum of understanding to build new and expanded packaging and testing capabilities at its Bromont site. The agreement will boost employment and economic activity in both Canada and the United States.
The US also announced $50 million in DPA funding for US and Canadian companies to improve advanced packaging of semiconductors and printed circuit boards in North America. Canada will contribute up to CAD $250 million to semiconductor initiatives through its Strategic Innovation Fund. The United States and Canada agreed to identify opportunities between the two countries to promote training and employment in priority areas such as clean energy and skilled trades, as well as to bring together key players from multinational corporations, unions, state and provincial governments, and educational and training institutions to expand the pool of talent required for critical supply chains. Under the Plan, the Departments of State, Commerce, Defense, and Energy,
as well as the United States Geological Survey, will work with Canadian counterparts to increase information and data sharing
promote private sector engagement, coordinate research and development, and cooperate at multilateralAddressing the climate crisis is President Biden's top priority, and both the United States and Canada, our largest energy trade partner, are dedicated to taking decisiveOur countries will grow the clean energy economy by passing creative legislation like the United States Inflation Reduction Act, which will accelerate the clean energy transition and convert North America into a clean energy superpower. forums. The United States and Canada have signed the world's largest market-based energy trading agreement, providing a solid foundation as we fight to reach net-zero greenhouse gas emissions. We will seek to standardize charging standards and develop cross-border alternative fuel corridors, investing USD $7.5 billion from the US Bipartisan Infrastructure Act and CAD $1.2
billion to create a network of electric car fast chargers and community charging alternatives on both sides of the border. The US and Canada will work together on the US Department of Energy's Energy Earthshot™, which establishes decadal performance targets for key technology areas. Canada wants to support the Long length Storage Shot (LDSS) objectives, which aim to reduce the cost of grid-scale energy storage by 90% for systems with 10 or more hours of length within a decade. To meet the LDSS target, Canada plans to prioritize energy storage technology for remote and off-grid uses. action.
Canada will fund and provide in-kind support for the Foundational Infrastructure for Responsible Use of Small Modular Reactor Technology (FIRST) program, which is the Biden administration's leading international initiative to assist partner countries in developing nuclear energy programs that meet the highest safety, security, and nonproliferation standards. The United States and Canada will also coordinate efforts to develop secure and reliable North American nuclear fuel supply chains that do not rely on authoritarian-based suppliers, as well as expand partnerships with long-standing allies and partners, both of which will help ensure access to low-enriched uranium and High-Assay Low Enriched Uranium.
Building on Canada and the United States' commitments to achieve net-zero power grids by 2035 and to accelerate efforts to phase out new
unabated coal power generation facilities, both countries plan to propose regulations to reduce greenhouse gas emissions from their respective sectors by this fall. The United States and Canada also want to collaborate with other major energy importers and exporters to build a globally consistent approach to measuring, monitoring, reporting, and verifying lifecycle methane and CO2 emissions along the fossil energy value chain. The United States and Canada have pledged to working closely with Arctic Indigenous Peoples and incorporating Indigenous Knowledge into decision-making processes whenever possible. The two governments agreed that reducing localized emissions of carbon dioxide, methane, and black carbon in the Arctic will supplement our global mitigation efforts. The two countries also agreed to conserve and protect Arctic biodiversity, ecosystems, habitats, and species, as well as work together to plan for, prevent, and respond to oil spills and other environmental disasters in the Arctic.
The Leaders noted the challenges that the development of the international border between the United States and Canada presents to Indigenous peoples. The leaders have agreed to work together to address the shared border's effects on mobility, traditional traditions, Native language preservation, kinship, cultural ties, and economic prospects for IndigenoWe the People. This includes a pledge to collaborate with Tribal Nations and Alaska Native Villages in the United States, as well as First Nations, Inuit, and Métis Peoples in Canada, to address long-standing border issues. Leaders agreed to work in the coming months to reach an agreement on a modernized Columbia River Treaty regime that provides equitable flood risk management, power generation, and environmental benefits to both countries, as well as Indigenous and Tribal nations, communities, and watershed stakeholders.
The United States and Canada are conducting a collaborative technical study and evaluation to determine if the 1991 Air Quality Agreement (AQA) meets its environmental objectives and is effective in minimizing transboundary pollution. The agreement contains commitments between the two countries to reduce acid rain and ground-level ozone. The study will also look into pollutants/issues not currently addressed by the AQA, such as particulate matter (PM2.5). Under the agreement, the United States and Canada will collaborate on scientific and research issues such as wildfires, ammonia, and methane as an ozone precursor.The Western Hemisphere is dealing with a big issue: irregular migration. As stated in the Los Angeles Declaration on travel and Protection, the United States and Canada are working together to address these concerns by stressing orderly and safe travel along established channels.
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