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Chapter 7

Canada’s Economy

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

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A trading nation

  • Trade has been central to Canada from the start, and commerce is still what drives the economy’s growth. Without trade with other nations, Canadians could not keep the standard of living they have.
  • Canada enacted free trade with the United States in 1988, and Mexico became a partner in 1994 in a broader North American agreement.
  • For hundreds of years the economy rested on farming and on exporting natural resources: fur, fish and timber above all. The Montreal Stock Exchange opened in 1832.
  • Canada’s economy ranks among the ten largest 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

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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.
  • Forestry, fishing, agriculture, mining and energy make up the natural resources industries, and natural resource commodities account for a large share of what Canada exports.

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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.

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