Country Profile: Canada, The Largest Trading Partner with the U.S.

by Michelle Remerscheid,  International Business Development Advisor, AVP

mrock@arvest.com

Cell: (972) 896-9427 | SWIFT: ARVTUS44

In a little over a week we will be highlighting “Doing Business in Canada”. There are many reasons why exporters should be interested in trade with Canada. For instance, 32 U.S. states rank Canada as their #1 export market. Canada is a highly receptive, open, and transparent market for U.S. products and services, with Canadians spending more than 60% of their disposable income on U.S. goods and services.

 There are numerous opportunities across several of Canada’s key industrial, governmental and consumer sectors. The following are the three most significant markets:

1. Aerospace - Canada’s aerospace market is the largest for civil flight simulator production, civil aircraft production, and civil engine production. Additionally, Montreal and Quebec are the world’s third largest aerospace hub. 
2. Automotive - Canada is the 2^nd largest automotive market in North America, which is highly integrated by the USMCA agreement. Global vehicle manufacturer’s include Ford, GM, Toyota Honda and FCA. Aftermarket component retail value estimates are over US $19B. 
3. National Defense - Canada’s National Defense’s budget for 2021-22 is US$19.3B with US$4.5B allocated for capital equipment spending.

 Market Entry Strategy planning provides the best strategy to enter the market, e.g., visiting the country, importance of relationships to finding a good partner, agent and through a distributor. For additional information on Canada, tune into our webinar Wednesday, December 14^th to learn more.