relationship, with total merchandise trade (exports and imports) exceeding Canada is also the largest exporter of energy to the United States. 'The Economic Relationship Between the United States, Canada, and . Experts say that North America's energy trade is taking us toward. Over 8 million jobs depend on the trading relationship with Canada, and it is the Canada is the United States' largest energy supplier, more oil exports come.
On the one hand, because of the high level of trade integration between the two countries, climate and energy policy choices in the US have both economic and environmental implications for Canada. Differences in policies can lead to competitive advantages for firms in one country.
On the other hand, Canada and the US have differ- ent energy sources, emissions profiles, forecast rates of emissions growth, and costs of reducing emissions. While there are obvious complementary elements, craft- ing a Canadian clean energy strategy that will integrate economic, environmental, social and regional factors suggests that a uniquely Canadian policy approach " complementary but different " could best meet our needs.
The US is the largest market for Canadian exports and the largest single source of Canadian imports.
Canada–United States trade relations
Inover 77 percent of Canadian exports were destined for US markets. The US accounts for around 65 percent of Canadian imports; the leading sectors are automobile manufacturing and parts, followed by the aerospace industry and the oil and gas sector.
InCanada had major trade surpluses with the US in oil and gas extraction, petroleum and coal products manufac- turing, paper manufacturing and wood product manufactur- ing. The oil and gas industry is now the largest source of Canadian exports to the US, having nearly doubled in value over the last five years.
The automobile manufacturing sector is a distant second. The value of Canadian energy exports to the US has grown substantially in the past decade. As shown in fig- ure 2, this growth is primarily due to an increase in oil and natural gas exports and rising prices for these commodi- ties. Canada imports more coal from the US than it exports, despite the fact that its overall trade balance with the rest of the world in that commodity is positive.
By far the most significant trade surplus from the energy trade for Canada comes from exports of petroleum products. One key difference between the ener- gy systems of Canada and the US is the composition of energy sources used for electricity generation.
As indicated in figure 4, in the majority of electric- ity generated in Canada came from hydroelectricity. This abundance of hydropower means that Canada depends much less on coal-fired power plants for electricity than many countries do " the US included.
The US derives significantly more electricity from coal than Canada does. The US also uses more natural gas for electricity generation.
The US-Canada Energy Trading Relationship | Global Trade Magazine
However, this abundance of hydropower does not necessarily translate into an advantage across all regions in Canada. In Ontario, for example, the provincial government maintains that it will close its four coal-fired plants Atikokan, Lambton, Nonticoke and Thunder Bay by December 31,citing environ- mental and health concerns.
The government plans to replace coal- fired capacity with natural gas, nuclear, hydroelectricity, and wind, along with increased conservation measures. These differences have obvious implications for any clean energy strategy. On the one hand, the US can achieve very large emissions reductions by replacing its coal-fired electricity plants with less carbon-intensive alter- natives, while Canada requires a broader range of measures across multiple sectors to reduce emissions.
On the other hand, electrification in Canada provides greater emissions reductions due to the lower emissions intensity of electricity generation.
This has implica- tions for both the ambition and pace of climate policy development and implementation here in Canada. Already, GHG emissions targets in Canada have been moderated to line up with less stringent proposed US targets, at 17 percent below levels by Yet US ambition and timing on the climate file remains unclear and uncertain.
Early momentum in Congress with the Waxman-Markey Bill, together with various Senate bills, has stalled. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. March Energy[ edit ] The strength of the Canada—U.
Energy trade is the largest component of this cross-border commerce. Canada has the third-largest oil reserves after Saudi Arabia and Venezuelathanks to its oil-sands resources. The United States has historically been Canada's only foreign market for natural gas, oil, and hydropower. In short, this energy relationship has enhanced U. However, this highly integrated U. Consequently, the United States no longer appears to be an unlimited market for Canadian energy, leaving Canada seeking new export destinations.
Both Canada and the United States are increasingly reliant on foreign investment to develop their resource sectors, with Asia serving as an important source of capital. Asian investors initially focused on project investments as minority joint venture partners but are showing increasing interest in owning production companies.
Canada–United States trade relations - Wikipedia
Asian investors' objectives for investing in the North American energy sector include both attractive financial returns on investment as well as an interest in North America as an energy supply source for their economies.
The expanding energy investment and trade between North America and Asia can be mutually beneficial. Canada is the only industrialized country in the world to still use a "supply management system" for regulating the supply of dairy products. March See also: List of Canadian television stations available in the United States and List of United States stations available in Canada Because English is the majority language in both countries, and accents and dialects on both sides of the border are relatively similar and being a variety of North American English as compared to the British or Australian Englishboth high culture and mass media are easily traded.
Granted, both countries have minority-language media—Canada's large francophone population and the United States' large hispanophone population—as well as immigrants and indigenous language speakers, but cultural trade mostly concerns English-language media.
The major difference is that the U.