Canada is one of the largest economies in the world, and it has a thriving trade relationship with numerous countries across the globe. One of the most crucial partnerships the country has is with its North American neighbors, the United States and Mexico, under the North American Free Trade Agreement (NAFTA). The agreement allows for the seamless flow of goods and services between the three countries, making for a prosperous trading relationship that benefits all parties.
In this article, we will highlight two of Canada`s most crucial trading partners under the NAFTA agreement.
1) United States of America (USA)
The United States of America is Canada`s largest trading partner, accounting for almost 75% of all trade in goods and services. The two countries share the longest international border in the world, which has facilitated trade for decades. The NAFTA agreement has been instrumental in boosting trade between Canada and the US, promoting the free flow of goods and services across the border. In 2019 alone, trade between Canada and the US exceeded $1 trillion, with the majority of this being made up of automobile and energy exports.
Mexico is another significant trading partner of Canada under the NAFTA agreement. Since the agreement`s signing in 1994, commerce between the two countries has blossomed. In 2019, trade between the two countries was valued at more than $44 billion, with the main exports being oil and gas, machinery, and vehicles. The NAFTA agreement has been critical in facilitating the trade relationship between Canada and Mexico, providing a platform for businesses in both countries to work together.
In conclusion, Canada has numerous trading partners across the globe, but its relationships with the United States and Mexico under the NAFTA agreement are among its most crucial. The agreement has been instrumental in promoting commerce between the three countries, making for a beneficial trading relationship that helps to grow the economies of all parties involved. As such, it is in the best interests of all Canadian businesses to continue fostering these relationships and exploring new opportunities for trade and investment.