The Cost of Leaving Canada Behind
On August 27, The Trump administration announced that it had reached a bilateral trade agreement in principle Mexico and pledged to move forward with it regardless of whether Canada joins, potentially upending commercial relations with its top trading partner.
What would a trade deal without Canada look like by the numbers? U.S. trade with its northern neighbor has grown by $200 billion over the past 15 years. U.S. imports from Canada and U.S. exports to Canada totaled over $580 billion in 2017. Excluding Canada from a trade deal with Mexico would leave over half of U.S. trade in the NAFTA region and 15 percent of global U.S. trade outside of a free trade agreement and exposed to additional tariffs.
U.S. Value of Trade with NAFTA Partners, Billions USD | |||
---|---|---|---|
Year | Canada | Mexico | NAFTA region |
2002 | 370.01 | 232.09 | 602.10 |
2003 | 391.52 | 235.47 | 626.99 |
2004 | 446.24 | 266.63 | 712.87 |
2005 | 502.28 | 290.36 | 792.64 |
2006 | 533.09 | 331.97 | 865.07 |
2007 | 565.94 | 346.63 | 912.58 |
2008 | 600.64 | 367.16 | 967.80 |
2009 | 430.91 | 305.55 | 736.45 |
2010 | 526.89 | 393.65 | 920.54 |
2011 | 596.62 | 461.16 | 1057.78 |
2012 | 616.91 | 493.47 | 1110.38 |
2013 | 633.26 | 506.51 | 1139.77 |
2014 | 662.10 | 536.74 | 1198.84 |
2015 | 577.16 | 532.89 | 1110.05 |
2016 | 544.52 | 523.98 | 1068.49 |
2017 | 581.58 | 557.58 | 1139.17 |
Data: U.S. Department of Commerce; Total of trade is the sum of imports and exports. |
Notes
For more on the U.S.-Mexico announcement, check out this episode of the Trade Guys podcast, and this analysis by CSIS experts.