The Globe and Mail reports in its Wednesday, Nov. 23, edition that U.S. exporters love Canada. The Globe's Barrie McKenna writes that it is the single largest
market for U.S. goods and services, accounting for 15
per cent of everything the United States sells to the
world. There is a high degree of integration within
industries such as autos, aerospace and food products.
Nearly 66 per cent of products and services that
cross the Canada-U.S. border are inputs for final products.
Car parts typically cross the border multiple
times before a vehicle reaches the consumer. About 13 per cent of imports from Canada go into
U.S. products sold to third countries.
President-elect Donald Trump apparently wants to target Canadian
lumber and livestock exports. Mr. McKenna notes that making Canada pay may not repatriate
U.S. jobs. The United States has already effectively
removed lumber from NAFTA, forcing Canada into a
managed trade deal. The last thing the U.S. lumber
industry wants is for lumber to be put back in NAFTA.
Perpetuating or increasing those restrictions will also
make lumber -- and U.S. homes -- more expensive.
The same applies to livestock.
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