Canada has trade agreements with many countries all around the world. Their top trade partners are the United States, China, Mexico, and Japan. They import around $240 Billion of Vehicles with the United States and export around $290 Billion, resulting in a $50 Billion trade balance. The next highest commodity that Canada imports is Nuclear Reactor, boilers, machinery. This industry trades the most with the U.S., importing $190 Billion and exporting $130 Billion, resulting in a $60 Billion trade balance. The third highest traded commodity is Mineral fuel and Oils, importing $95 Billion and exporting $590 Billion, leaving around a $500 Billion trade balance with the U.S. This patten makes sense because Canada and The U.S. have low shipping costs compared to other countries because of their approximate location. Not only do they trade because they are close, but because our cultures and values are somewhat similar so we are concerned about the same things, as a whole nation. Thus, trading with them is an easier option than agreeing to terms with other countries. Canada has an overall trading surplus of $105 Billion.
Some other trends that occurred happened in the past around 2008. The most notable chances that occurred between 2008 and 2013 are the shift from Nuclear Reactors to Vehicles. In 2008 the number one commodity was Nuclear reactors with $59 Billon in imports and $34 Billion in exports, yielding a trade deficit of $25 Billion. The second highest commodity was Vehicles with $60 Billion in imports, and exports of $50 Billion. This trend was reversed in 2010 when Vehicles toped Nuclear reactors for the top spot. Mineral Fuels and Oils are the number one traded commodity amongst the worlds population. In the last five years, Mineral fuel and oils have been in the top four list of commodities.
One good that stands out in particular are Mineral fuels, and oils. Its total import value has increased $18 Billion from 2008 to 2013. Canada’s top partner was the United States for the five year time period. Similarly, the United States top importer of Mineral fuel and oils is Canada. What stands out between this similarity is that the import value for the US is 113 Billion. This commodity in particular has one of the highest price increase among all good and services traded. This trend is believed to be happening because the prices of oil are increasing world wide. Since the Middle East is in control of the most oil, meaning they are one of the highest exporters of oil. Also due to increased embargoes and other import regulations, it has cost these countries an increasing amount to import these goods. Thus, the trend of the U.S. and Canada’s top spot for import value of mineral fuel and oils can be concluded as followed. Due to the proximity of our physical locations, we can import more goods and services as individual countries and sell them to each other. Since Canada has less embargo and import/export regulations than the US, it makes more sense to trade goods with them since we cannot get it ourselves.
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