‘Data for Business’ is an effort of the Langley Chamber, in partnership with the Canadian Chamber, to bring our members reports, stats, and analysis on economic and business data to help inform business and investment decisions. Read our latest update below:

In light of the Port of Vancouver shutdown, and the recent US election, Canada's place in international trade is top of mind right now.  The Langley Chamber would like to share this recent report from our partners at the Canadian Chamber of Commerce on the significance of Canada-US trade.  The Langley Chamber is an active member of the Canadian Chamber, and works with their data and research team to bring important information to business and government decision-makers.  

This report, "Partners in Prosperity" outlines the economic importance of Canada-US trade, not just to Canada but to the US itself, and explores the depths of our closely interconnected economies and supply chains.  Some of the top takeaways from this report include:

1. In this time of growing global uncertainty and protectionism, Canada is a critical and reliable supply chain partner for U.S. companies and consumers.
2. Canada-U.S. trade overwhelmingly involves intermediate inputs. In practical terms, this means that a significant share of Canadian exports to the U.S. are actually inputs for U.S. exports. As such, maintaining efficient cross-border supply chains ultimately makes both countries more competitive at home and abroad, benefitting workers and businesses, and increasing economic resilience to global shocks.
3. Half of all two-way merchandise trade between Canada and the U.S. involves firms exporting to “related parties” in which they have an ownership stake.
4. A significant share of Canadian exports to the U.S. come from U.S. companies. Roughly 12% of the total value of Canadian exports to the U.S. consists of value added that originates from U.S. producers. This means that Canadian exports to the U.S. also indirectly generate income and wages for other U.S. businesses and workers, far beyond those specific transactions.
5. Canada is an important export market for U.S. businesses, and is the top export destination for 34 U.S. states.
6. Canadians invest billions more in the U.S. than Americans invest in Canada. The book value of Canadian direct investment in the U.S. is nearly $1.1 trillion versus the $620 billion of direct U.S. investment in Canada.
7. A 10% tariff on U.S. imports — as recently proposed Donald Trump’s reelection campaign -- would have a large and negative impact, not only for Canada’s economy (reducing real income by 0.9% and labour productivity by nearly 1%), but also for the U.S. economy (decreasing incomes by 0.6% and labour productivity by 0.5%). Trade in energy and autos would be the most disrupted product categories.
8. Things would be even worse if other countries retaliated to the U.S. tariffs with tariff walls of their own. In that case, Canadian incomes would fall by 1.5% and productivity by 1.6%. For the U.S., the declines would be nearly 1%. This means that, if enacted, Trump’s tariffs and an ensuing trade war would result in roughly $800 USD ($1,100 CAD) in foregone income annually for people on both sides of the border!