In 2022, the economic ties between the United States and Canada demonstrated significant growth, reflecting a dynamic trade relationship. U.S. exports of goods and services to Canada surged to a remarkable $428.6 billion. This marks a significant 16.7% increase compared to the previous year.
Simultaneously, imports from Canada also experienced robust growth, reaching $490.7 billion, representing a remarkable 22.1% uptick from 2021. This burgeoning trade activity resulted in a trade deficit of $62.1 billion with Canada for the year.
The pivotal role of Canada in the U.S. trade landscape was evident in 2022. Exports to Canada accounted for a substantial 14.2% of total U.S. exports. Imports from Canada constituted 12.4% of total U.S. imports.
Industrial supplies and materials emerged as the key drivers of this bilateral trade relationship. These products accounted for a significant portion of the trade activity. Industrial supplies and materials comprised 27.2% of U.S. exports to Canada and 54.3% of U.S. imports from Canada.
In addition to trade, the investment landscape between the two nations also showcased positive trends. In 2022, the U.S. direct investment position in Canada increased by 10.1% compared to the previous year, reaching a substantial $438.8 billion.
Conversely, Canada’s direct investment position in the United States also expanded, with an increase of 7.3% from 2021, reaching $589.3 billion.
Furthermore, multinational enterprises (MNEs) played a significant role in the economic interactions between the U.S. and Canada.
In 2020, Canada-based majority-owned affiliates of U.S. MNEs employed 1.18 million people, with sales amounting to $549.6 billion, despite a slight decrease in employment by 0.4% and a sales decline of 12.8% compared to the previous year.
Moreover, U.S.-based majority-owned affiliates of Canada MNEs thrived in 2021, with a 4.2% increase in employment, reaching 866.30 thousand people, and robust sales of $439.3 billion, reflecting a substantial 13.9% growth.
These statistics underline the resilience and vitality of the economic partnership between the United States and Canada, highlighting each country’s pivotal role in the other’s economic landscape.
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