Canada imports more from the United States than any other country by a significant margin. In fact, Canada purchases products from the United States at a rate that is more than twice as high as that of China The U.S. imports nearly half of its products from Canada, which are subsequently utilized by American manufacturers. This importation of raw materials contributes to the competitiveness of North America and jobs in the United States. In a similar vein, our organizations procure goods from U.S. suppliers to manufacture Canadian goods. Briefly, the Canada-U.S. trade relationship is founded on long-standing binational supply chains, in which approximately 79% of Canadian exports to the United States are integrated into U.S. supply chains.
In 2023, the automotive industry's highly integrated supply chains supported nearly $125 billion in bilateral merchandise trade in motor vehicles and parts, further illustrating the relationship between Canada and the U.S. No other industry more accurately reflects this relationship. Both nations have factories that specialize in particular components of vehicle manufacturing. By the time a vehicle exits an assembly line, certain materials and components have traversed the Canada-U.S. boundary on multiple occasions during the production process. True More products and services are purchased by Canada from the United States than from China, Japan, and Germany combined.
In agriculture, as well, sophisticated cross-border supply chains are in place for a significant number of the products that Canadians and Americans
purchase at their grocery stores or restaurants. As an illustration, the lettuce and tomato on a hamburger may originate from distinct countries, while the beef and bun may originate from both. These food products are sustaining American families and are of high quality and safety.
In 2023, Canada was the most significant market for 35 U.S. states. Check out the State Trade Fact Sheets to learn about the significance and relationship between Canada and your state. This collection emphasizes the significance of Canada's commerce relations with all 50 states.The North American Free Trade Agreement (NAFTA) was modernized by the United States, Mexico, and Canada after 25 years to update it for the 21st century. The new agreement, the United States-Mexico-Canada Agreement (USMCA), is a continuation of the success of NAFTA and will continue to provide support for millions of middle-class jobs that are well-paying. While working to ensure that the advantages are more broadly distributed, it will preserve unfettered trade in North America.
Disrupting Fair and Free Trade Buy America Domestic content requirements, such as Buy America, endanger our economic partnership. Companies frequently regard these as "domestic" due to the substantial dependence of U.S. manufacturing on raw materials and other products from Canada. Many laborers in the steel industry, for instance, are members of the same union on both sides of the border. However, Buy America provisions impede employment growth and investment, stifle innovation, and impose red tape on contracting authorities. When our markets are free and equitable, our relationship is most effective.Canadian and United States have a substantial investment relationship in addition to their trade in products. Approximately US$528 billion in 2021, Canada is the third largest source of foreign direct investment in the United States, and the United States is the sole largest investor in Canada.
The Canadian market is an optimal choice for U.S. companies that are seeking to expand their operations
According to the World Bank, Canada is the most straightforward location in the G7 and OECD to establish a business. Canada's business climate is stable, and it offers a highly educated and skilled workforce, preferential access to global markets, generous research and development incentives, and low taxation and business costs. In fact, Canada is a global leader in a number of these fields. Ability to Access Talent Canada boasts the most diverse and highly educated talent pool in the globe. In the G20, Canada boasts the maximum availability of skilled labor, with nearly two-thirds of its workforce possessing post-secondary education. The Global Skills Strategy was initiated by Canada in 2017 to guarantee that companies can rapidly recruit top global talent with minimal red tape. This strategy will foster Canadian innovation and bolster Canadian employment. The Tech Talent Strategy was also announced by Canada in 2023 as a component of the Global Skills Strategy program. The objective of this initiative is to attract tech workers from around the globe to reside and work in Canada.
A Competitive Tax Environment The federal tax systems of Canada are among the most competitive in the globe. The combined federal-provincial corporate rate is approximately 26%, which is lower than the majority of G7 countries. The corporate tax rate is only 15%. Global Market Access Canada serves as a gateway to 1.5 billion consumers and more than half of the global GDP ($41 trillion), with 15 free trade agreements that encompass 51 markets, including all G7 members. With a combined GDP of over $29 trillion and a consumer base of over 500 million, Canada has preferential access to the entire North American market. The European Union's trade agreement with Canada provides businesses with duty-free access to 99% of Canadian products, enabling them to reach an additional 500 million consumers and generate a GDP of $17 trillion. Canada's preferred market access to over 1.5 billion consumers and $51 trillion in GDP.
Strengthen information sharing between the two countries and address justice reform, as well as cross-border law enforcement to make communities safer
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to enhance law enforcement collaboration by reestablishing the Cross-Border Crime Forum.Coordinate initiatives to combat violent extremism and terrorism in all their manifestations, both domestically and internationally. Cooperate more effectively to enhance cybersecurity and to address foreign interference and disinformation.The United States has no closer friend, collaborator, or ally than Canada, as President Biden has recently stated. One of the most extensive and intimate relationships between our two nations has been established over the past 150 years. Canada is our most significant trading partner, with nearly $2.6 billion in products and services crossing our shared border, the world's longest land border, on a daily basis. This represents a nearly 20% increase from the previous year in 2022. Millions of U.S. jobs are contingent upon trade and investment with Canada. Download the graphic. Partnerships for Prosperity Download the report. International Trade Policy A variety of trade policy issues are addressed by Canada and the United States in collaboration, such as the modernization of our trading rules and their preservation of fairness and freedom.
Only approximately 12% of all foreign investment in the United States is made by Canadians. Furthermore, the United States is home to nearly 900,000 occupations that are supported by more than 5,500 Canadian-owned businesses. which is nearly two-thirds of the world's output of products and services, was expanded with the recent ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. These agreements offer Canadian businesses a secure and stable trade environment, as well as reduced administrative burdens. Selling internationally from Canada.The North American Aerospace Defense/Defence Command (NORAD) should be modernized in order to enhance cooperation in the Arctic and on continental defense.
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