What kind of trade relations Canada and US have?

Before the 1860's the Canadians have had a special trading deal with the British, but this deal ended and the Canadians needed some place new to trade with. The United States and Canada made a trading agreement but the United States stopped this agreement out of no where. Canadians thought that if they were one country they would have a lot better advantages and could trade with each other better.


Trade relations between Canada and the US are of great importance to Canada. The US is Canada's most important trading partner and the US has provided Canada with much of its investment capital and technology through foreign investment, resulting in a high level of US ownership and control of the Canadian economy. Canada is also the largest export customer of the US as well as a major source of natural resources for US industry. Almost 10% of US exports are shipped to Canada, that is more then 60% of Canada's imports.


The 2 countries improved from 1875 to 1900 the linkages that determined the pattern for closer trades. Americans invested heavily in Canada, establishing "branch plants" and taking over many Canadian-owned company's. Ex., in 1898 the giant Standard Oil company bought out Canada's largest oil company, Imperial Oil. Trade increased, and business and financial ties were quickly formed, reinforced by transportation and labour.


While access to US markets, investment and technology have helped Canadians, the remaining commercial arrangements, along with the great difference in population between the 2 countries, has created serious problems for Canada, including a high level of dependency on and vulnerability to US policies.



http://www.thecanadianencyclopedia.com


-Mitch Fraser