The economic and investment relationship between the US and Canada supports millions of jobs for both countries through direct foreign investment, cross-border trade, and integrated economies. Almost one-half of the goods that the US purchases from Canada are raw materials that are needed in manufacturing. Meanwhile, Canada buys more from the US than any other country in the world.
The automotive industry is the best example of the strong relationship between the US and Canada. The industry has a highly integrated supply chain that results in nearly $110 million in bilateral trade. In both countries, there are factories specializing in specific components required in manufacturing a vehicle. When a car rolls off the assembly line, some of its components and materials have crossed the borders of the two countries multiple times during the production process.
Agriculture is another sector that has largely benefitted from the sophisticated cross-border supply chains. High-quality and safe products being purchased by Americans are more likely to have crossed the borders. For example, the lettuce and tomato on the hamburger may have come from Canada but the beef and buns may even be from both countries.
A number of trade policies between the two North American countries have been modernized to make sure that they are free and fair. The United States-Mexico-Canada Agreement (USMCA) that replaced NAFTA will continue to support jobs and maintain free trade in North America while making sure that benefits are mutually shared.
In addition to the trade relationship, both the US and Canada have an important investment relationship. The US is the single largest investor in Canada while Canada is the largest source of foreign direct investment in the US. Canada is a most ideal place for US businesses to grow because of its stable business climate, low taxes and business costs, highly educated and skilled workforce, generous incentives for research and development, and access to global markets.
Cross-border trade in North America will not be possible without the presence of logistics and trucking providers like Titan Transline. Their reliable transportation solutions allow the seamless transport of goods on time for a highly competitive price.