Skip to content

Chapter 7

Canada’s Economy

A trading nation: the three main types of industry, and the relationship with the United States.

Practise this chapter

A trading nation

  • Canada has always been a trading nation and commerce remains the engine of economic growth. Canadians could not maintain their standard of living without trade with other nations.
  • Canada enacted free trade with the United States in 1988, and Mexico became a partner in 1994 in a broader North American agreement.
  • Canada has one of the ten largest economies in the world.
Is NAFTA still Canada’s trade agreement with the U.S. and Mexico?Facts that changeIs Canada in the G8 or the G7?Facts that change

Sources for this section

Three main types of industry

  • Service industries provide jobs in transportation, education, health care, construction, banking, communications, retail, tourism and government. More than 75% of working Canadians have jobs in service industries.
  • Manufacturing industries make products to sell in Canada and around the world, including paper, high technology equipment, aerospace technology, automobiles, machinery, food and clothing.
  • Natural resources industries include forestry, fishing, agriculture, mining and energy. A large percentage of Canada’s exports are natural resource commodities.

Sources for this section

Trade with the United States

  • Canada and the United States are each other’s largest trading partner, and together they have the biggest bilateral trading relationship in the world.
  • Over three-quarters of Canadian exports are destined for the United States.
  • Millions of Canadians and Americans cross what is traditionally known as “the world’s longest undefended border” every year, in safety.

Sources for this section