Canada's Economy

Exam-focused notes based on the Canada Official Guide, Pages 42-43.

Big Picture

Trading Nation

Trade is described as the engine of Canada's economic growth.

Three Main Industries

Service, manufacturing and natural resources industries make up the economy.

U.S. Relationship

The United States is Canada's largest international trading partner.

Natural Resources

Forestry, fishing, agriculture, mining and energy remain important to Canada's economy and exports.

1. Canada - A Trading Nation

Canada has always been a trading nation. Commerce remains an important engine of economic growth, and the guide states that Canadians could not maintain their standard of living without engaging in trade with other nations.

1988
Canada enacted free trade with the United States.
1994
Mexico became a partner in the broader North American Free Trade Agreement (NAFTA).
2008
The guide records NAFTA's market at more than 444 million people and more than $1 trillion in merchandise trade.
Guide fact: Canada is described as having one of the ten largest economies in the world and as part of the G8 group of leading industrialized countries.

2. The Three Main Types of Industries

Service Industries

Provide thousands of different jobs, including transportation, education, health care, construction, banking, communications, retail services, tourism and government.

Key fact: More than 75% of working Canadians have jobs in service industries.

Manufacturing Industries

Make products to sell in Canada and around the world.

Examples include paper, high technology equipment, aerospace technology, automobiles, machinery, food and clothing.

Largest international trading partner: United States.

Natural Resources Industries

Include forestry, fishing, agriculture, mining and energy.

These industries have played an important role in Canada's history and development.

Many areas still depend on natural resources, and a large percentage of exports are natural-resource commodities.

3. Canada-United States Trade

Canada and the United States enjoy close economic relations. The guide states that each is the other's largest trading partner.

  • More than three-quarters of Canadian exports are destined for the United States.
  • Canada and the U.S. have the biggest bilateral trading relationship in the world, according to the guide.
  • Integrated Canada-U.S. supply chains compete with the rest of the world.
  • Canada exports billions of dollars of products to the United States every year.

Major Canadian Exports Mentioned

Energy

Energy products

Industry

Industrial goods, machinery and equipment

Automotive

Automotive products

Food & Resources

Agricultural, fishing and forestry products

Consumer Goods

Consumer products

4. The Canada-U.S. Border

Millions of Canadians and Americans cross the border every year. The guide describes it as traditionally known as "the world's longest undefended border."

Peace Arch - Blaine, Washington: The Peace Arch symbolizes the close ties and common interests between Canada and the United States.

The Peace Arch is inscribed with the words "children of a common mother" and "brethren dwelling together in unity."

Quick Memorization Sheet

Canada: A trading nation.
Economic engine: Commerce and international trade.
3 industries: Services + Manufacturing + Natural Resources.
Service jobs: More than 75% of working Canadians.
1988: Free trade with the United States.
1994: Mexico joined the broader NAFTA partnership.
Natural resources: Forestry, fishing, agriculture, mining and energy.
Largest trading partner: United States.
Canadian exports to U.S.: More than three-quarters of Canadian exports.
Border: Traditionally called the world's longest undefended border.
Peace Arch: Symbolizes close Canada-U.S. ties and common interests.
NAFTA guide figure (2008): Over 444 million people and over $1 trillion in merchandise trade.