Canada and U.S. Trading

WHAT IS BEING TRADED?

• Exports from U.S.: Finished equipment, Forestry Products, Automobile and industrial machine parts
• Exports from Canada: Raw materials(especially lumber), some machine parts, equipment

Relationship

• Both countries are each other's largest trading partners
• NAFTA- established free trade between the countries and encouraged investment
• Terrorism and border control have been issues for businesses
• Disputes over traded materials, especially softwood lumber
• Disputes over prices as both countries price products differently, especially prescription drugs

EFFECT ON THE COUNTRIES

• Strong relations between the two
• Causes little conflict
• Gives a good ally for tough circumstances
• Both countries are getting materials they need
• Helped shape strong relations and economies