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Canada: A Macroeconomic Study of the United States' Most Important Trade Partner

by Paul Sundell and Mathew Shane

Outlook No. (WRS-0602) 36 pp, September 2006

Canada has become the United States’ most important trading partner. Canada is a large exporter to the United States of critical raw materials—including natural gas, petroleum, and wood products—and a substantial importer of finished industrial and consumer goods. Canada’s agricultural trade continues to grow in importance reflecting trade liberalization and greater integration of agricultural markets. The trade outlook is enhanced by Canada’s prospects for long-term economic growth of about 3 percent per year, which is underpinned by expected moderate growth in working-age population and labor productivity.

Keywords: U.S.-Canadian trade, capital flows, capital structure, real trade-weighted exchange rate, labor productivity, multifactor productivity, long-term growth outlook

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Last updated: Tuesday, April 08, 2014

For more information contact: Paul Sundell and Mathew Shane

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