Canada is one of the world's wealthiest nations, a member of the Organisation for Economic Co-operation and Development (OECD) and Group of Eight (G8). As with other first world nations, the Canadian economy is dominated by the service industry, which employs about three quarters of Canadians. Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. In part because of this Canada is highly dependent on international trade, especially trade with the United States. Preserving Canadian independence in the face of the strong pressure from the United States has long been a major political issue. Canada also has a sizeable manufacturing sector, centred in Southern Ontario, with the automobile industry especially important. ISO 4217 Code CAD User(s) Canada Inflation rate 2. ... ISO 4217 Code CAD User(s) Canada Inflation rate 2. ... Nafta or NAFTA may refer to: an acronym for the North American Free Trade Agreement an acronym for the New Zealand Australia Free Trade Agreement the town/Tokyo of Nafta, Tunisia This is a disambiguation page: a list of articles associated with the same title. ... The Organization for Economic Co-operation and Development (OECD) is an international organization of those developed countries that accept the principles of representative democracy and a free market economy. ... For other uses of the initials WTO, see WTO (disambiguation). ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... Services are: plural of service Tertiary sector of industry IRC services Web services the name of a first-class cricket team in India This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... Map of countries showing percentage of population who have an income below the national poverty line The poverty line is the level of income below which one cannot afford to purchase all the resources one requires to live. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... Manufacturing is the transformation of raw materials into finished goods for sale, by means of tools and a processing medium, and including all intermediate processes involving the production or finishing of component parts (semi-manufactures). It is a large branch of industry and of secondary production. ... Cranes are essential in large construction projects, such as this skyscraper In project architecture and civil engineering, construction is the building or assembly of any infrastructure. ... Services are: plural of service Tertiary sector of industry IRC services Web services the name of a first-class cricket team in India This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... This article is in need of attention. ... An 1837 political cartoon about unemployment in the United States. ... 2006 is a common year starting on Sunday of the Gregorian calendar. ... Chemical tanks in Lillebonne, France Chemical industry includes those industries involved in the production of petrochemicals, agrochemicals, pharmaceuticals, polymers, paints, oleochemicals etc. ... Minerals are natural compounds formed through geological processes. ... WOOD is a pair of radio stations in Grand Rapids, Michigan owned by Clear Channel on the frequencies of 1300 AM and 105. ... Piece of paper Paper is a thin, flat material produced by the compression of fibers. ... The Guppy, also known as guppie (Poecilia reticulata) is one of the most popular freshwater aquarium fish species in the world. ... Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a thick, dark brown or greenish liquid. ... Many stoves use natural gas. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... A machine is any mechanical or electrical device that transmits or modifies energy to perform or assist in the performance of tasks. ... Airbus A380 An aircraft is any machine capable of atmospheric flight. ... Telecommunication involves the transmission of signals over a distance for the purpose of communication. ... Chemical tanks in Lillebonne, France Chemical industry includes those industries involved in the production of petrochemicals, agrochemicals, pharmaceuticals, polymers, paints, oleochemicals etc. ... The term plastics covers a range of synthetic or semi-synthetic organic condensation or polymerization products that can be molded or extruded into objects or films or fibers. ... Fertilizers are chemicals given to plants with the intention of promoting growth; they are usually applied either via the soil or by foliar spraying. ... WOOD is a pair of radio stations in Grand Rapids, Michigan owned by Clear Channel on the frequencies of 1300 AM and 105. ... Timber in storage for later processing at a sawmill Timber is a term used to describe wood, either standing or that has been processed for use—from the time trees are felled, to its end product as a material suitable for industrial use—as structural material for construction or wood... Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a thick, dark brown or greenish liquid. ... Many stoves use natural gas. ... Lightning strikes during a night-time thunderstorm. ... Aluminum is a soft and lightweight metal with a dull silvery appearance, due to a thin layer of oxidation that forms quickly when it is exposed to air. ... For other uses, see United States (disambiguation) and US (disambiguation). ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... A machine is any mechanical or electrical device that transmits or modifies energy to perform or assist in the performance of tasks. ... Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a thick, dark brown or greenish liquid. ... Chemical tanks in Lillebonne, France Chemical industry includes those industries involved in the production of petrochemicals, agrochemicals, pharmaceuticals, polymers, paints, oleochemicals etc. ... Lightning strikes during a night-time thunderstorm. ... For other uses, see United States (disambiguation) and US (disambiguation). ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... ISO 4217 Code CAD User(s) Canada Inflation rate 2. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... The Organisation for Economic Co-operation and Development (OECD) is an international organisation of those developed countries that accept the principles of representative democracy and a free market economy. ... The Group of Eight (G8) consists of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States. ... The terms First World, Second World, and Third World were used to divide the nations of Earth into three broad categories. ... The service sector or the service industry, is one of the three main industrial categories of a developed economy, the others being the secondary industry (manufacturing and primary goods production such as agriculture), and primary industry (extraction such as mining and fishing). ... The primary sector of industry generally involves the conversion of natural resources into primary products. ... Loggers on break, c. ... Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a thick, dark brown or greenish liquid. ... International trade is the exchange of goods and services across international boundaries or territories. ... Canadian identity refers to the set of characteristics and symbols that a majority of Canadians regard as expressing their unique place and role in the world. ... Southern Ontario is the portion of the Canadian province of Ontario which lies south of the French River and Algonquin Park. ... Automakers or automobile manufacturers are companies that design and manufacture automobiles. ...

Canada is a free market economy with slightly more government intervention than the United States, but much less than most European nations. Canada has traditionally had a lower per capita gross domestic product (GDP) than its southern neighbour (whereas wealth has been more equally divided), but higher than the large western European economies. For the last decade, after a period of turbulence, the Canadian economy has been growing rapidly with low unemployment and large government surpluses on the federal level. As such, the Canadian dollar has risen in value against most major currencies during the past five years. A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... A regions gross domestic product, or GDP, is one of several measures of the size of its economy. ... An 1837 political cartoon about unemployment in the United States. ... Canada is a constitutional monarchy and a Commonwealth Realm (see Monarchy in Canada) with a federal system of parliamentary government, and strong democratic traditions. ... ISO 4217 Code CAD User(s) Canada Inflation rate 2. ...

Economic sectors

Natural resources

Canada's huge land mass, the second largest in the world after Russia, ensures that a wide array of natural resources are present. Different resources are centered in different parts of Canada. In British Columbia, the forestry industry is of great importance, while the oil industry is central to Alberta's prosperity. Northern Ontario is home to a wide array of mines, while the fishing industry has long been central to the character of the Atlantic provinces, though it has recently been in steep decline. Motto: Splendor Sine Occasu (Latin: Splendour without diminishment) Official languages none stated in law; English is de facto Flower Pacific dogwood Capital Victoria Largest city Vancouver Lieutenant-Governor Iona Campagnolo Premier Gordon Campbell (BC Liberal) Parliamentary representation  - House seat  - Senate seats 36 6 Area Total  - Land  - Water    (% of total)  Ranked... Motto: Fortis et liber (Latin: Strong and free) Official languages English Flower Wild rose Capital Edmonton Largest city Calgary Lieutenant-Governor Norman Kwong Premier Ralph Klein (PC) Parliamentary representation  - House seat  - Senate seats 28 6 Area Total  - Land  - Water    (% of total)  Ranked 6th 661,848 km² 642,317 km² 19... Northern Ontario is the part of the province of Ontario, Canada, which lies north of Lake Huron, Georgian Bay, the French River and Lake Nipissing. ... Fishing is the activity of hunting for fish. ... Atlantic Canada consists of the four Canadian provinces on the Atlantic Ocean: Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island. ...

However, these industries have increasingly become less and less important to the overall economy. Only some 4% of Canadians are employed in these fields, and they account for less than 6% of GDP. They are still paramount in many parts of the country. Many, if not most, towns in the northern part of the country, where agriculture is difficult, exist because of a nearby mine or source of timber. Canada is a world leader in the production of many natural resources such as gold, nickel, uranium, and lead. Several of Canada's largest companies are based in natural resource industries, such as EnCana, Inco, and Barrick Gold. The vast majority of these products are exported, mainly to the United States. There are also many secondary and service industries that are directly linked to primary ones. For instance one of Canada's largest manufacturing industries is the pulp and paper sector, which is directly linked to the logging industry. General Name, Symbol, Number gold, Au, 79 Chemical series transition metals Group, Period, Block 11, 6, d Appearance metallic yellow Atomic mass 196. ... General Name, Symbol, Number nickel, Ni, 28 Chemical series transition metals Group, Period, Block 10, 4, d Appearance lustrous, metallic Atomic mass 58. ... General Name, Symbol, Number uranium, U, 92 Chemical series actinides Group, Period, Block n/a, 7, f Appearance silvery gray metallic; corrodes to a spalling black oxide coat in air Atomic mass 238. ... General Name, Symbol, Number lead, Pb, 82 Chemical series poor metals Group, Period, Block 14, 6, p Appearance bluish white Atomic mass 207. ... EnCana Corporation is one of the worlds largest independently owned oil and gas companies. ... Inco Limited is a Canadian mining and metals company, headquartered in Toronto, Ontario. ... Barrick Gold Corporation TSX: ABX NYSE: ABX is a leading international gold mining company with its headquarters in Toronto, Ontario It currently maintains operating mines and development projects in the United States, Canada, Australia, Peru, Chile, Argentina and Tanzania. ... Pulp and Paper is the name of the largest United States-based trade magazine for the pulp and paper industry. ...

The relatively large reliance on natural resources has several effects on the Canadian economy and Canadian society. While manufacturing and service industries are easy to standardize, natural resources vary greatly by region. This ensures that differing economic structures developed in each region of Canada, contributing to Canada's strong regionalism. At the same time the vast majority of these resources are exported, integrating Canada closely into the international economy. Howlett and Ramesh argue that the inherent instability of such industries also contributes to greater government intervention in the economy, to reduce the social impact of market changes.

Such industries also raise important questions of sustainability. Despite many decades as a leading producer, there is little risk of depletion. Large discoveries continue to be made, such as the massive nickel find at Voisey's Bay. Moreover the far north remain largely undeveloped as producers await higher prices or new technologies as many operations in this region are not yet cost effective. In recent decades Canadians have become less willing to accept the environmental destruction associated with exploiting natural resources. High wages and Native land claims have also curbed expansion. Instead many Canadian companies have focused their exploration and expansion activities overseas where prices are lower and governments more accommodating. Canadian companies are increasingly playing important roles in Latin America, Southeast Asia, and Africa. It is the renewable resources that have raised some of the greatest concerns. After decades of escalating overexploitation the cod fishery all but collapsed in the 1990s, and the Pacific salmon industry also suffered greatly. The logging industry, after many years of activism, have in recent years moved to a more sustainable model. Species Gadus morhua Gadus macrocephalus Gadus ogahvgfgvbc Cod surfacing This article is about codfish; for other meanings, see COD. Cod is the common name for the genus Gadus of fish, belonging to the family Gadidae, and is also used in the common name of a variety of other fishes. ...

Energy

Nodding donkey pumping an oil well near Sarnia, Ontario

Canada is one of the few developed nations that is a net exporter of energy. Most important are the large oil and gas resources centred in Alberta, but also present in neighbouring British Columbia and Saskatchewan. The vast Athabasca Tar Sands give Canada the world's second largest reserves of oil. In Quebec and British Columbia, as well as Ontario and Manitoba, hydroelectric power is a cheap and relatively environmentally friendly source of abundant energy. In part because of this, Canada is also the world's highest per capita consumer of energy. Cheap energy has enabled the creation of several important industries, such as the large aluminum industry that makes use of cheap Quebec and British Columbia hydroelectricity. Oil Well with horsehead pump near Sarnia, Ontario, Canada. ... A colourful nodding donkey in the United States A nodding donkey is the overground drive for a submersible pump in a borehole. ... Sarnia is a city in Southwestern Ontario, Canada (population 70,876 in 2001). ... Motto: Multis E Gentibus Vires (Latin: From many peoples, strength) Official languages English Flower Western Red Lily Capital Regina Largest city Saskatoon Lieutenant-Governor Gordon Barnhart Premier Lorne Calvert (NDP) Parliamentary representation  - House seat  - Senate seats 14 6 Area Total  - Land  - Water    (% of total)  Ranked 7th 651,036 km² 591... Tar sands in Alberta The Athabasca Tar Sands is a large deposit of tar sands in north-western Canada located mainly in the province of Alberta and, to a much lesser degree Saskatchewan. ... Motto: Je me souviens (French: I remember) Official languages French Flower White garden lily Capital Quebec City Largest city Montreal Lieutenant-Governor Lise Thibault Premier Jean Charest (PLQ) Parliamentary representation  - House seat  - Senate seats 75 24 Area Total  - Land  - Water    (% of total)  Ranked 2nd 1,542,056 km² 1,183... Aluminum is a soft and lightweight metal with a dull silvery appearance, due to a thin layer of oxidation that forms quickly when it is exposed to air. ...

Historically an important issue in Canadian politics is that while Western Canada is one of the world's richest sources of energy, the industrial heartland of Southern Ontario and Quebec has fewer native sources of power. It is, however, cheaper for Alberta to ship its oil to the western United States than to eastern Canada. The eastern Canadian ports thus import significant quantities of oil from overseas, and Ontario makes significant use of nuclear power. Western Canada is a geographic region of Canada, also known as simply the West, generally considered to be west of the province of Ontario. ... There are 18 electricity producing nuclear reactors in Canada, and another two undergoing refurbishment. ...

In times of high oil prices this means that the majority of Canada's population suffers, while the West grows extremely wealthy. The National Energy Policy of the early 1980s attempted to force Alberta to sell low priced oil to eastern Canada. This policy proved deeply divisive, and quickly lost its importance as oil prices collapsed in the mid-1980s. One of the most controversial sections of the Canada-United States Free Trade Agreement of 1988 was a promise that Canada would never charge the United States more for energy than fellow Canadians. The National Energy Program was enacted by the government of Pierre Trudeau in 1980 and administered by the Department of Energy, Mines and Resources (Canada). ... The Free Trade Agreement (FTA) was a trade agreement reached by Canada and the United States in October of 1987. ...

Agriculture

A grain elevator in Alberta

Canada is also one of the world's most important suppliers of agricultural products, with the Canadian Prairies one of the most important suppliers of wheat and other grains. Canada is a major exporter of agricultural products, to the United States but also to Europe and East Asia. As with all other developed nations the proportion of the population and GDP devoted to agriculture fell dramatically over the 20th century. Image File history File linksMetadata Download high resolution version (1083x807, 138 KB) Summary Cropped version of Image:Alberta modern cement grain elevator 034. ... Image File history File linksMetadata Download high resolution version (1083x807, 138 KB) Summary Cropped version of Image:Alberta modern cement grain elevator 034. ...

Unlike the agricultural industries of many developed nations, Canadian farmershave to compete internationally without large subsidies. The Canadian Government subsidizes agriculture mostly for disaster, not giving farmers "base" support. Dairy and poultry farmers are distributed across Canada, but most of the production in these industries are found in central Canada. These sectors are focused on the Canadian market, not exports. They rely on tariffs to limit the amount of imports coming in and farmers are earning their living from market sales only, without government subsidies.

Manufacturing

The general pattern of development for wealthy nations was a transition from a primary industry based economy to a manufacturing based one, and then to a service based economy. Canada did not follow this pattern, manufacturing has always been secondary, though certainly not unimportant. In part because of this, Canada did not suffer as greatly from the pains of deindustrialization in the 1970s and 1980s. Some important industries, such as the textile industry, did mostly disappear abroad, however. Deindustrialization is the process by which the manufacturing-based economy of a country or region declines. ...

By a considerable margin the most important Canadian manufacturing industry is the automobile industry of southwest Ontario. This industry is largely seen as the creation of the Autopact of the 1960s. Ontario is home to branch plants to all the major American automobile makers and many parts factories owned by Canadian firms such as Magna International. Ontario today produces more vehicles each year than the neighbouring U.S. state of Michigan, the heart of the American automobile industry. Manufacturers have been attracted to Canada due to the highly educated population with lower labour costs than the United States. Canada's government-run healthcare system is also an important attraction, as it exempts companies from the high health insurance costs they must pay in the United States. Automakers are companies that produce automobiles. ... The Canada-United States Automotive Agreement more commonly known as the Auto Pact was an important trade agreement between Canada and the United States. ... The branch plant economy is a term used to describe the phenomonon of U.S. companies building factories (branch plants) in Canada, primarily to sell products in the Canadian market. ... Magna International Inc. ... Official language(s) None (English, de-facto) Capital Lansing Largest city Detroit Area  Ranked 11th  - Total 97,990 sq mi (253,793 km²)  - Width 239 miles (385 km)  - Length 491 miles (790 km)  - % water 41. ... The term medicare (in lowercase) (French: assurance-maladie) is the unofficial name for Canadas universal public health insurance system. ...

Much of the Canadian manufacturing industry consists of branch plants of United States firms, though there are some important domestic manufacturers, such as Bombardier. This has raised several concerns for Canadians. Branch plants provide mainly blue collar jobs, with research and executive positions confined to the United States. Bombardier Inc. ... A blue-collar worker is a working class employee who performs manual or technical labor, such as in a factory or in technical maintenance trades, in contrast to a white-collar worker, who does non-manual work generally at a desk. ...

Service sector

The Toronto-Dominion Centre in Toronto

The service sector in Canada is vast and multifaceted, employing some three quarters of Canadians and accounting for two thirds of GDP. The largest employer is the retail sector, employing almost 12% of Canadians. The retail industry is mainly concentrated in a relatively small number of chain stores clustered together in shopping malls. In recent years the rise of big-box stores, such as Wal-Mart (of the United States) and Future Shop (a subsidiary of the American Best Buy) have led to fewer workers in this sector and a migration of retail jobs to the suburbs. Download high resolution version (768x1024, 256 KB)Taken by SimonP in April 2005 File links The following pages link to this file: Toronto Toronto-Dominion Centre Categories: GFDL images ... Download high resolution version (768x1024, 256 KB)Taken by SimonP in April 2005 File links The following pages link to this file: Toronto Toronto-Dominion Centre Categories: GFDL images ... The Toronto-Dominion Centre. ... Drawing of a self-service store. ... The King of Prussia Mall, one of the largest in the world, located in Pennsylvania, United States For the traditional meaning of the word mall, see pedestrian street or promenade. ... Big-box store is a colloquial term used to describe a style of retail store, and by extension to the company behind the store. ... Wal-Mart Stores, Inc. ... Future Shop is a Canadian electronics retailer. ...

The second largest portion of the service sector is the business services, employing only a slightly smaller percentage of the population. This includes the financial services, real estate, and communications industries. This portion of the economy has been rapidly growing in recent years. It is largely concentrated in the major urban centres, especially Toronto. The Big Five banks, centred on that city, are some of Canada's largest and most important firms. This article is in need of improvement. ... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ... In Canada, the term Big Five Banks is frequently used to refer to the five biggest banks that dominate the banking industry in Canada: Royal Bank of Canada, CIBC, Toronto-Dominion Bank, Bank of Montreal and Bank of Nova Scotia. ...

The education and health sectors are two of Canada's largest, but both are largely under the purview of the government. The health care industry has been rapidly growing, and is the third largest in Canada. Its rapid growth has led to problems for governments who must find money to fund it.

Canada has an important high tech industry, and also an entertainment industry creating content both for local and international consumption. Tourism is of ever increasing importance, with the vast majority of international visitors coming from the United States. High tech refers to high technology, technology that is at the cutting-edge and the most advanced currently available. ...

Political issues

Regional imbalances

The Canadian economy differs greatly from region to region. Traditionally Ontario has been the economic engine of Canada, home to a third of its population and much of its industry. Recent years have seen rapid growth in the west as trade with Asia has enriched British Columbia and oil wealth provided a major boost to Alberta, and Saskatchewan.

The four Atlantic provinces have traditionally been significantly poorer than the rest of Canada, especially after the recent collapse of the fishing industry. Recent years have seen some significant moves towards diversification, especially as offshore oil and gas wealth have begun to flow into the region. Quebec has also traditionally been poorer than the Canadian average although by a lesser margin than the Atlantic provinces.

Relations with the U.S.

A significant concern for many Canadians in the first few years of the 21st Century is Canada's relationship with the U.S. Although "brain drain" has slowed as a result of the minor economic downturn in the U.S. between 2001 and 2003 following the September 11, 2001 attacks, Canada's own job market has suffered as well. Disputes over trade tariffs, multi-lateral military action and controversial Canadian legislation such as same-sex marriage, immigration law, and legal medical marijuana have raised tensions and cooled relations between these two countries. The two countries also seem to be heading in different directions where values are concerned, and this could begin to provide problems with relations in the future. A brain drain or human capital flight is an emigration of trained and talented individuals (human capital) for other nations or jurisdictions, due to conflict or lack of opportunity or health hazards where they are living. ... For the 1993 bombing, see World Trade Center bombing. ... A tariff is a tax placed on imported and/or exported goods, sometimes called a customs duty. ... Nationality law is the branch of a countrys legal system wherein legislation, custom and court precendent combine to define the ways in which that countrys nationality and citizenship are transmitted, acquired or lost. ... Cannabis sativa extract. ...

Despite these differences, Canada is by far the United States' largest trading partner, with more than $1.7 billion CAD in trade per day in 2005. This relationship represents 81% of exports and 67% of imports for Canada[5], and 23% of exports and 17% of imports for the United States[6]. By comparison, in 2005 this was more than U.S. trade with all countries in the European Union combined[7], and well over twice U.S. trade with all the countries of Latin America combined[8]. Just the two-way trade that crosses the Ambassador Bridge between Michigan and Ontario equals all U.S. exports to Japan. Canada's importance to the United States is not just a border-state phenomenon: Canada is the leading export market for 35 of 50 U.S. states. ISO 4217 Code CAD User(s) Canada Inflation rate 2. ... 2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ... Latin America consists of the countries of South America and some of North America (including Central America and some the islands of the Caribbean) whose inhabitants mostly speak Romance languages, although Native American languages are also spoken. ... The Ambassador Bridge is a privately-owned suspension bridge that connects Detroit, Michigan, in the United States, with Windsor, Ontario, in Canada. ...

Bilateral trade increased by about 51.78% between 1989, when the U.S.-Canada Free Trade Agreement (FTA) went into effect, and 1994, when the North American Free Trade Agreement (NAFTA) superseded it. Trade has since increased by 40%. NAFTA continues the FTA's moves toward reducing trade barriers and establishing agreed upon trade rules. It also resolves some long-standing bilateral irritants and liberalizes rules in several areas, including agriculture, services, energy, financial services, investment, and government procurement. NAFTA forms the largest trading area in the world, embracing the 406 million people of the three North American countries. This article or section does not cite its references or sources. ...

The largest component of U.S.-Canada trade is in the automotive sector. Under the 1965 Canada-United States Automotive Agreement (also known as the Auto Pact), which provided for free trade in cars, trucks, and auto parts, two-way trade in automotive products rose from $715 million in 1964 to $104.1 billion in 1999. Auto Pact benefits are incorporated into NAFTA. 1965 (MCMLXV) was a common year starting on Friday (the link is to a full 1965 calendar). ... The Canada-United States Automotive Agreement more commonly known as the Auto Pact was an important trade agreement between Canada and the United States. ... 1964 (MCMLXIV) was a leap year starting on Wednesday (the link is to a full 1964 calendar). ... 1999 (MCMXCIX) was a common year starting on Friday, and was designated the International Year of Older Persons by the United Nations. ...

The U.S. is Canada's leading agricultural market, taking nearly one-third of all food exports. Conversely, Canada is the second-largest U.S. agricultural market (after Japan), primarily importing fresh fruits and vegetables and livestock products. Nearly two-thirds of Canada's forest products, including pulp and paper, are exported to the United States; 71.66% of Canada's total newsprint production also is exported to the U.S.

At $73.6 billion in 2004, U.S.-Canada trade in energy is the largest U.S. energy trading relationship, with the overwhelming majority ($66.7 billion) being exports from Canada. The primary components of U.S. energy trade with Canada are petroleum, natural gas, and electricity. Canada is the United States' largest oil supplier and the fifth-largest energy producing country in the world. Canada provides about 16% of U.S. oil imports and 14% of total U.S. consumption of natural gas. The United States and Canada's national electricity grids are linked and both countries share hydropower facilities on the Western borders. 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a thick, dark brown or greenish liquid. ... Many stoves use natural gas. ... Lightning strikes during a night-time thunderstorm. ...

While 95% of U.S.-Canada trade flows smoothly, there are occasionally bilateral trade disputes over the remaining 5%, particularly in the agricultural and cultural fields. Usually, however, these issues are resolved through bilateral consultative forums or referral to World Trade Organization (WTO) or NAFTA dispute resolution. In May 1999, the U.S. and Canadian Governments negotiated an agreement on magazines that will provide increased access for the U.S. publishing industry to the Canadian market. The United States and Canada also have resolved several major issues involving fisheries. By common agreement, the two countries submitted a Gulf of Maine boundary dispute to the International Court of Justice in 1981; both accepted the Court's 12 October 1984 ruling which demarcated the territorial sea boundary. A current issue between the United States and Canada is the ongoing softwood lumber dispute, as the U.S. alleges that Canada unfairly subsidizes its forestry industry. WTO Logo The World Trade Organization (WTO) is an international, multilateral organization, which sets the rules for the global trading system and resolves disputes between its member states, all of whom are signatories to its approximately 30 agreements. ... The topic of softwood lumber exports from Canada to the United States has always been contentious; since 1982 there have been four major disputes. ...

In 1990, the United States and Canada signed a bilateral Fisheries Enforcement Agreement, which has served to deter illegal fishing activity and reduce the risk of injury during fisheries enforcement incidents. The U.S. and Canada signed a Pacific Salmon Agreement in June 1999 that settled differences over implementation of the 1985 Pacific Salmon Treaty for the next decade.

Canada and the United States signed an aviation agreement during President Clinton's visit to Canada in February 1995, and air traffic between the two countries has increased dramatically as a result. The two countries also share in operation of the St. Lawrence Seaway, connecting the Great Lakes to the Atlantic Ocean. The Saint Lawrence Seaway in its broadest sense (see Great Lakes Waterway) is the system of canals that permits ocean-going vessels to travel from the Atlantic Ocean to the Great Lakes as far as Lake Superior. ... The Great Lakes from space The Great Lakes are a group of five large lakes on or near the United States-Canadian border. ...

The U.S. is Canada's largest foreign investor; at the end of 1999, the stock of U.S. direct investment was estimated at $116.7 billion, or about 72% of total foreign direct investment in Canada. U.S. investment is primarily in Canada's mining and smelting industries, petroleum, chemicals, the manufacture of machinery and transportation equipment, and finance.

Canada is the third-largest foreign investor in the United States. At the end of 1999, the stock of Canadian direct investment in the United States was estimated at $90.4 billion. Canadian investment in the United States is concentrated in manufacturing, wholesale trade, real estate, petroleum, finance, and insurance and other services.

See also

• OECD's Canada country Web site and OECD Economic Survey of Canada
• Economic history of Canada
• Canadian and American economies compared
• List of Canadian provinces and territories by gross domestic product
• Economy of Quebec

Canadian history has long tended to be focused on economics. ... The comparison between the economies of Canada and the United States is generally far more of a concern to Canadians than to Americans. ... This article lists Canadian provinces and territories by gross domestic product. ... The economy of Quebec is diversified and post-industrial with a strong potential for growth. ...

References

• Howlett, Michael and M. Ramesh. Political Economy of Canada: An Introduction. Toronto: McClelland and Stewart, 1992.
• Wallace, Iain, A Geography of the Canadian Economy. Don Mills: Oxford University Press, 2002.
• This article contains material from the CIA World Factbook which, as a US government publication, is in the public domain.