Digging Deep into Canada/U.S. Ag Trade Relationship

With NAFTA negotiations on the horizon, the USDA says Canada is a major trade partner for agriculture.

Trade Economist Bryce Cooke looks at the numbers.

“On the import side, U.S. imported $21.6 billion from Canada.”

That compares to exporting $20.2 billion to the Great White North which results in a trade deficit.

Cooke said that look alone doesn’t give a true picture.

“You have to remember that Canada has a much smaller population than the U.S. The fact that the level of demand for U.S. agricultural exports to such a smaller population rivals what the U.S. is importing, is a story unto itself.”

If you look at amount imported per resident, Canada’s population of nearly 36 million people imports $564 of U.S. ag per person while the U.S.’ 321 million imports $67 of Canadian ag per person.