Chapter 3: Identify Canada’s key trading relationships with other nations.

1. Canada and North America

Flag of the North American Free Trade Agreement
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Canada, the United States and Mexico have long collaborated as continental partners in the world’s most prosperous region. The North America region has a combined population of almost 530 million and an economy that represents more than one-quarter of the world’s GDP. The three countries are amongst each other’s largest trading partners and sources of foreign investment. The continent’s abundant natural resources and integrated continental energy markets provide important economic and security benefits for our citizens.

The North American economy has developed as an integrated production platform, which maximizes our capabilities and makes our economies more innovative and competitive. While the majority of Canada’s trade is with the United States, trade and investment with Mexico is growing – both directly and indirectly – as part of regional/continental supply chains, which has opened new global export opportunities for Canadian small and medium-sized enterprises. In 2015, North American trilateral merchandise trade amounted to US$1.0 trillion. Our combined GDP has more than doubled over the past two decades, rising from US$8.0 trillion (in 1993) to $US20.6 trillion today. North American economic integration has also encouraged a steady increase in investment among all three countries. For example, in 2015, Canadian companies invested over C$463 billion into the U.S. and Mexico.

The emergence of new economic powers and trading regions, and the resulting increased global competition, is transforming the dynamics of the global economy and posing new challenges to North America’s future prosperity. Given geographic proximity, all three countries face common issues relating to environmental sustainability, natural disasters and pandemics. Moreover, our shared land borders bring common security risks, such as the flow of illicit drugs, transnational crime and terrorism.

Close collaboration between the governments of Canada, the United States and Mexico is critical to addressing these broader economic, security and environmental challenges. This collaboration rests on shared democratic values, respect for the rule of law and free market principles. Beyond the North American continent, the three countries work together to advance prosperity and security throughout the region and the world. We collaborate together within the Organization of American States, at the Summit of the Americas and at the G20, with the aim of strengthening the effectiveness of these international bodies to address pressing global challenges.

Source

Government of Canada. (2023, April 22). 3.1. Canada and North America.


Video: Canada – United States Trade Relationship. connect2canada.

 

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Video: Canada’s Major Trade Partners. Jason Richea.

 

3.2       Canada and Latin America and the Caribbean

Canada values the deep, long-standing relationships that it has with the countries and peoples of Latin America and the Caribbean, as well as with the region’s multilateral organizations, such as:

  • Organization of American States
  • Inter-American Development Bank
  • Caribbean Development Bank
  • Caribbean Community (CARICOM)
  • Pan American Health Organization
  • Pacific Alliance

Every three years since 1994, the Summit of the Americas has provided heads of state and government from the hemisphere with an opportunity to meet and work collaboratively to advance a common agenda, affirm shared values and commit to concerted actions at the national and regional level to address challenges faced in the Americas. The most recent Summit of the Americas was held June 6 to 10, 2022 in Los Angeles, United States.

Canada’s priorities in the region

Canada shares connections with countries and peoples of Latin America and Caribbean that go far beyond geography, including people-to-people ties; shared values; investment; student exchanges; and tourism. Canada works with partners in the region to reinforce those relationships; address social, economic and security issues; and identify opportunities to further develop trade and investment ties for mutual economic, social and cultural benefit.

Canada engages with the countries and peoples of the region through policy dialogue, stakeholder engagement, and international development programming to, among other things:

  • Support an inclusive and sustainable health and economic recovery from the COVID-19 pandemic
  • Encourage inclusive economic growth and sustainable development
  • Support poverty eradication
  • Promote and defend human rights
  • Strengthen democracy
  • Support climate change mitigation and adaptation
  • Improve regional security, including addressing the root causes of irregular migration and supporting safe and orderly migration
  • Increase opportunities for marginalized groups, in particular women and girls, and Indigenous peoples

An important partner in the hemisphere

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Canada has eight Free Trade Agreements (FTAs) with the following countries in the hemisphere:

  • Chile
  • Colombia
  • Costa Rica
  • Honduras
  • Panama
  • Peru
  • United States and Mexico

Canada also has eight Foreign Investment Promotion and Protection Agreements and 30 air transport agreements with countries in the Americas.

The total value of Canadian international assistance in Latin America and the Caribbean was $1.23 billion in 2020-2021.

Source

Government of Canada. (2023, April 22). Canada and Latin America and Caribbean.

3.3       Canada and the Asia-Pacific

Canada is committed to playing a key role in the Asia-Pacific region, now and in the long term. We are working with global, regional and local partners to:

  • build partnerships
  • strengthen economic ties
  • provide development assistance.

 Building partnerships

The Asia-Pacific region has a growing role in the global economy and politics. Events in the Asia-Pacific region are of critical importance to a broad range of Canadian goals, including prosperity, development, inclusion, sustainability, peace, and security.

Canada seeks to strengthen its relationships across Asia and the Pacific. We increased our presence on the ground with 10 new offices in China and India since 2006, committed new resources to the Association of Southeast Asian Nations (ASEAN) and appointed Canada’s first-ever resident ambassador to Myanmar in March 2013.

Canada actively works with key organizations that share common interests in the Asia-Pacific region, including:

  • Asia-Pacific Economic Cooperation (APEC)
  • Association of Southeast Asian Nations (ASEAN)
  • Asian Development Bank
  • The World Bank
  • The International Finance Corporation
  • Asian Infrastructure Investment Bank
  • International Labour Organization
  • The Aga Khan Foundation
  • The Canadian Red Cross
  • North Pacific Anadromous Fish Commission (NPAFC)
  • Western and Central Pacific Fisheries Commission (WCPFC)
  • North Pacific Fisheries Commission (NPFC)

Economic and Trade Relations

The Canada-Asia-Pacific relationship is important to Canadian trade and investment:

  • China is Canada’s second-largest trading partner
  • Japan is Canada’s fourth-largest trading partner and largest source of foreign direct investment from Asia and sixth globally
  • Australia is the eighth-largest global destination for Canadian direct investment abroad
  • In 2017, two-way merchandise trade between Canada and India reached $8 billion and reached $23 billion between Canada and ASEAN’s 10 member countries

Canada has prioritized key trade initiatives, including:

  • Comprehensive and Progressive Agreement for Trans-Pacific Partnership
  • Exploratory discussions on a possible Canada-China Free Trade Agreement
  • Canada-Japan Economic Partnership Agreement
  • Canada-India Comprehensive Economic Partnership Agreement Negotiations
  • Canada-Korea Free Trade Agreement
  • Exploratory discussions for a possible Canada-ASEAN Free Trade Agreement
  • Canada-Thailand Exploratory Free Trade Discussions
  • Pacific Alliance Free Trade Agreement Negotiations

Canada is committed to promoting a progressive approach to trade that fosters open markets, creates jobs, helps business become more competitive and drives growth across the Asia-Pacific region. To this end, Canada is working to ensure that trade discussions are informed by, and respond to, issues such as workers’ rights, the environment, gender equality and reinforcing the continued right of governments to regulate in the public interest.

Development assistance

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Canada’s development assistance programming in Asia began in the 1950s and remains an important component of our engagement in many developing Asia-Pacific countries. From our early support to help countries to meet basic human needs, Canadian assistance has evolved to provide targeted technical assistance to support institutional reforms necessary for sustainable poverty reduction. Today, Canadian programs help Asian nations develop their capacity to address the region’s most pressing challenges:

  • reducing poverty
  • increasing gender equality and empowering women and girls
  • strengthening governance, promoting human dignity, and protecting the environment.

Canada maintains an active development assistance presence in Afghanistan, Bangladesh, Indonesia, Mongolia, Myanmar, Pakistan, Philippines, Sri Lanka and Vietnam, as well as across southeast Asia. Canada also supports multilateral and global programs in Asia.

Source

Government of Canada. (2023, April 22). 3.1. Canada and Latin America and Caribbean.

3.4.      Canada and Europe

Close up of flags of Canada and EU Europe Union.
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Canada and Europe share a long history, common values and close ties. Canada has developed strong bilateral relationships with the institutions of the European Union (EU), as well as with most European countries inside and outside of the EU.

Shared values

Canada maintains ties with most European countries (both EU and non-EU member states) through shared membership in various international organizations, including:

  • Canada and the United Nations (UN)
  • Canada and North Atlantic Treaty Organization (NATO)
  • Canada and the Organization for Security and Co-operation in Europe (OSCE)
  • Canada and the World Trade Organization (WTO)
  • Canada and the Organization for Economic Co-operation and Development (OECD)

Trade and Political Relations

The EU is Canada’s second largest trade and investment partner, and a central actor on the vast majority of global issues of concern to Canada. On October 30, 2016, Canada and the European Commission signed the Canada-EU Comprehensive Economic and Trade Agreement (CETA) and the Strategic Partnership Agreement (SPA), which together deepen and broaden the scope of our bilateral relationship on a wide range of issues.

Cooperation on international security

NATO is a cornerstone of Canada’s international security policy and a pillar of the rules-based international order. 22 European countries are both NATO Allies and EU Member States. Canada is committed to Euro-Atlantic security, as evidenced by our steadfast engagement in NATO operations, as well as our contribution to EU Common Security and Defense Policy missions. Canada supports NATO-EU cooperation to foster their complementary strengths.

Security and defence in Europe

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Canada’s history is bound together with Western Europe with whom it maintains strong ties, including in security and defence. Canada’s relations with the countries of Eastern Europe and Eurasia have become increasingly important during the past few decades. Canada is a strong voice for democracy and freedom in Eastern Europe and Eurasia and continues to work closely with partners in resolving the conflicts of this region. Canada is one of the strongest supporters of humanitarian, political and economic assistance to Ukraine in the face of Russia’s continued aggression.

Trade Commissioner offices abroad

The Trade Commissioner Service can assist with export advice and provide guidance to help you achieve your international business goals.

Source

Government of Canada. (2023, April 22). 3.1. Canada and Europe.

3.5.      Canada and the Middle East and North Africa

Canada values its connections with the countries of the Middle East and North Africa (MENA) and their unique historical, linguistic, and cultural heritages.

We cooperate with MENA countries as a member of:

  • Gulf Cooperation Council
  • Global Coalition against Daesh
  • La Francophonie
  • International Syria Support Group

Canada works with partners across the region to promote peace, stability and economic opportunity.

Canada’s priorities in the region

Our priorities in the Middle East and North Africa are:

  • saving lives and alleviating suffering, especially for vulnerable civilians, refugees and displaced people
  • combating terrorism and violent extremism and the spread of weapons of mass destruction
  • promoting respect for human rights, including women’s rights and the rights of religious minorities
  • increasing food security
  • improving opportunities for children and youth and empowering women
  • encouraging democratic practices and institutions and respect for the rule of law
  • advocating for economic reforms and increasing two-way investment and trade

Canada’s Middle East strategy

Over the course of five years, between 2016 and 2021, Canada is investing up to $3.5 billion to contribute to international efforts to enhance regional security and stabilization, to provide vital humanitarian assistance to those in need, to help host communities build resilience in the face of conflict, and to increase Canada’s diplomatic engagement in Iraq, Syria, Jordan and Lebanon. Find out more about Canada’s Middle East strategy.

Trade and economic relations

Over the past decade and a half, Canada has greatly increased its trade presence in the Middle East. Growth in exports and imports with the region exceed Canada’s growth in trade overall.

Canada has Free Trade Agreements with Israel and Jordan and 4 Foreign Investment Promotion and Protection Agreements with countries in the region (Egypt, Jordan, Kuwait, and Lebanon).

Source

Government of Canada. (2023, April 22).  Canada and the Middle East and North Africa.

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