Canada and the US have a strong, interdependent trade relationship. Both country’s economies heavily rely on the transfer of goods and services. In fact, it’s described that Canada and the US have “the largest trading relationship in the world.” This relationship thrives thanks to shared borders, similar values, and friendly governments.
Currently, Canada is the United States’ second-largest goods trading partner, coming second to China. In 2019, the two countries traded a total of $612.billion in goods, with Canada’s imports counting for a total of $292.6 billion.
At Dolphin Delivery, we get to see and facilitate a lot of the trade conducted between Canada and our southern neighbour. Our trucks safely transport goods across the border every day for suppliers in BC and across the nation. Keep reading for our breakdown of the top six categories that Canada imports from the USA.
1. Services ($67.6 billion)
The largest category of imports from Canada to the United States is services. The services category refers to the import of workers. The leading services categories were workers from the travel, professional and management, and intellectual property (computer software, audiovisual, and other products) sectors.
On average, Canadian wages are lower than their American counterparts, but there is still a lot of appeal for Americans to come and work across the border. First, the average cost of living is typically lower in the United States, justifying the lower wages. Additionally, if a worker’s long-term plan is to get their Permanent Residence (PR) in Canada, they can eventually benefit from the publicly-funded healthcare system. These – and other factors – are appealing enough that thousands of Americans come to work in Canada every year.
2. Vehicles ($52 billion)
When it comes to goods, the biggest category of imports to Canada from the US is vehicles. After the United States, Canada is the second-largest automotive market in North America. Additionally, the US is Canada’s primary source for imported vehicles. In 2020, 63.7% of all imported vehicles into Canada came from the US.
One of the main reasons Canada relies so heavily on the US for vehicle imports is the similarities in both countries’ statutes within the automotive sector. Approximately 90% of the countries’ road-safety regulations match, making the US the easy and safe choice for car imports.
3. Machinery ($45 billion) and Electrical Machinery ($25 billion)
The next two main import categories for Canadian imports are machinery and electrical machinery, totaling $70 billion between the two. Some of the main types of machinery imported into the country include machine or machine parts for:
- Computers and optical readers
- Turbo-jets
- Transmission shafts, gears, and clutches
- Heavy machineries such as bulldozers, excavators, and road rollers
- Liquid pumps and elevators
4. Mineral Fuels ($25 billion)
Canada and the United States rely heavily on each other to trade natural resources and mineral fuels. For example, some of British Columbia’s main exports include wood and metallic mineral products. Nationwide, Canada is a major supplier to the United States of “14 out of 35 critical minerals, with the potential to expand into many more.”
Of course, it’s not a one-way street. Canada also turns to the US for a regular supply of minerals. Canada receives 45% of its mineral imports from the United States. In 2020, Canada’s total mineral imports from the United States declined by 2%, most likely due to the pandemic.
The top three mineral imports in 2020 were:
- Iron and steel (27%)
- Gold (11%)
- Aluminum (7%)
5. Agricultural products ($24 billion)
Similar to minerals, Canada and the United States have a healthy exchange of agricultural products. In 2019, the primary agricultural imports from the US were prepared food ($2.0 billion), fresh vegetables ($2.0 billion), fresh fruit ($1.5 billion), snack foods ($1.4 billion), and non-alcoholic beverages ($1.0 billion).
Both Canada and the US are enormous countries with diverse landscapes that can produce different crops. So, it’s only natural that they benefit from each other’s proximity and trade agriculture products.
6. Plastics ($13 billion)
Plastics are used by all of us everyday. So much so that plastics are one of Canada’s main imports. And Canada turns to the US for a majority of its plastics supply. Some of the main types of plastics imported from the United States are:
- Articles for Conveyance or Packing of Goods, Stoppers, of Plastics
- Polymers of ethylene, in primary forms
- Other Plates, Sheets, Film, Foil, Strip of Plastics (Non-cellular)
- Polymers of propylene or other olefins, prim forms
- And more
And remember, if you’re a supplier looking to start importing from the United States, Dolphin Delivery is can help. We focus on safety, integrity, and on-time delivery with every job we take. Get a quote for our services today.
Source: Office of the United States Trade Representative: US-Canada Trade Facts
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