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Canada’s Economy

A trading nation: three kinds of industry and one very large neighbour.

Practise these 18 questionsRead the official chapter

A trading nation

  • Canada enacted free trade with the United States in 1988; Mexico joined in 1994 under NAFTA.
  • The economy ranks inside the world’s top ten.
  • The United States is Canada’s largest trading partner and each is the other’s largest. Over three-quarters of Canadian exports go to the U.S.A.
  • This is the biggest bilateral trading relationship in the world, across "the world’s longest undefended border".
  • The Peace Arch at Blaine, Washington is inscribed "children of a common mother" and "brethren dwelling together in unity".

Three main types of industry

  • Service industries — transportation, education, health care, construction, banking, communications, retail, tourism and government. More than 75% of working Canadians work in services.
  • Manufacturing industries — paper, high technology equipment, aerospace, automobiles, machinery, food and clothing.
  • Natural resources industries — forestry, fishing, agriculture, mining and energy. A large percentage of exports are natural resource commodities.