Characterizing the Trade between the US and Canada - Example

Characterizing the Trade between the US and Canada Introduction: United s is considered as the world’s largest importer and share very closest relationship with Canada; event Canada and United States are considered the world’s largest partners in term of trade. United States imports a large amount of Canadian products such as crude petroleum, broadcasting equipment, vehicles, and computer equipment. Approximately 300000 people use different modes of transports to cross borders every day. United States has large amount of Canada-owned companies in 17000 locations that serves big amount of people with jobs. In year 2013, the total trade of the country was $3846.4 billion from which $1578.9 billion was based on exports and $2267.6 billion was based on imports, country is facing trade deficit with Canada. During 1999 to 2007 there was an immense increase in deficit has been encountered, but after the financial crisis of 2008 the deficit decreased. In 2013, goods brought from Canada are $ 338.2 billion in amount and make 14.6% of overall United States imports. Oil is the major import from Canada and $113 billion of total imports are spent on the purchase of oil in 2013. In 2014, United States imported 90% of energy exported by Canada. Canada is amongst the largest producers of petroleum and comes at number five. It is considered that Canada is the third largest country that in term of oil reserves. America spent $ 10.8 billion on the purchase of plastics products in 2013 and known as big importer of plastic products. America spent $8.2 billion r for the purchase of wood in 2013 and $ 8 billion have been spent on electronic equipment. Things that come at least cost exported to Canada include lights, signs, and furniture. Total exports of United States in 2013, was $1578.9 billion. Canada imported 300.3 billion of United States exports, 19.0 percent of total exports. Vehicles and machinery are the major exports that United States made to Canada in 2013. Except trade, Canada and United States share very strong relationship of investment. United States and Canada are the rich manufacturing economies and have common living standards, but economies of both countries differ in several ways. Theory that can be related to the trade that exists between United States and Canada is Heckscher-Ohlin theory of trade. However, applications of all theories can be seen in the trade of these countries, approximately all theories share the concept of comparative advantage that applies on the trade of both countries. The aim of this paper is to evaluate the trade relationship of Canada and United States and to explore the major imports and exports of these countries. This paper has been divided in 5 sections. 1st section elaborates the top 10 products that are traded to all countries and top 10 destinations of trade and the deficit condition with Canada. 2nd section is based on the elaboration of major imports and exports that take place between these two countries. 3rd section discloses the investment relationship of both countries and highlight the measures of both economies. 4rt section is based on economic theories of trade; these theories have been related to the trade that exists between US and Canada. 5th and final section is based on conclusion. 2. Evolution of trade between United-States and Canada. United States is the most popular country in term of trading. Top ten trading partners of United States are Brazil, Canada, China, Japan, Germany, South Korea, France, Germany, Mexico, and United Kingdom. The top five products that are exported by United States worldwide include cars, planes, spacecraft, and helicopters; refined petroleum, gas turbines, and packaged medicines. In addition, the top export destinations of United States involve Canada, Japan, Mexico, Germany, and China. United states is the top importer of cars, computers, crude petroleum, and broad casting equipment; and the major importing destinations from where United states import these goods include china, Japan, Germany, Mexico and Canada. China is the most important partner in term of import and Canada in term of export (Atlas). In this report, characterization of trade exists between United States and Canada will be done. The trade relationship between these two countries is the world’s closest relationship that increased after the drop of 2009 (CSR 2011). Approximately 300000 cross every day between these two borders by all modes of transportation. The defense agreement of United States with Canada is most broad as compare to other countries. Because of their comprehensive trading relationship, each country is able to have millions of jobs opportunities. Canada and United States just not have world’s largest trade relationship with $710 billion in 2012 only, but they have world’s largest relationship of investment as well; Canada does its direct investment in United States and in 2012, the total of that investment was $289 billion (US Department of States). United States has companies that are Canada-owned in 17000 locations that provide 619000 jobs to American across the United States. Source: Census Bureau of United States In year 2013, the total trade of the country was 3846.4 billion of dollars from which $1578.9 billion was based on exports and $2267.6 billion was based on imports, which means country is facing trade deficit (USCB, a). Figure 1 is the evaluation of trade between Canada and United States. The world largest bilateral trade is conducted by two countries “Canada and united states”, Canada is the single largest partner of United States and both countries are WTO’s members. Here the question arises that why the Canada is only single partner; the answer is “Free Trade Agreement” between these two countries that came in to force in the year of 1989. Due to this agreement, the trade between these two countries has increased more than triple. These two countries have trade free policy and work on several levels either local or federal. Even up to $1.4 million in services and goods is exchanged in every minute. As being a largest customer of United States, Canada purchased goods from United States that was worth of $233 billion. Event more than 8 million of United States jobs depend on the investment and trade that United States does with Canada (Government of Canada). Figure 1: Trade Condition between Canada and United States Source: Census Bureau of United States The above figure is the representation of United States trade deficit with Canada, which shows that Unites States import are more as compare to its exports to Canada. During 1999 to 2007 there was an immense increase in deficit has been encountered, but after the financial crisis of 2008 the deficit decreased because United States reduced the importing of goods and services not from Canada only but from other countries as well. Canada is the largest trading partner of United States and 19 percent of goods and services are exported to Canada, which is higher as compare to other countries; Canada comes at first position in term of exports. However, in term of imports, Canada comes at number two position and 14.6% of total goods and services are imported from Canada. In 2012, the total amount of United States trade with Canada was $ 707 billion and in 2013, it came up to $ 638.4 billion. In 1985, United States faced trade deficit with Canada amounted $21755.4 million this deficit continued to increase by 1986. In 1987, decrease in deficit was encountered with the amount of $11270.6 million that continued to decrease until 1991with the amount of $ 5914.1 million. In 1992, deficit increased by the amount of $8035.5 million and constantly increased until 1996; the amount was $ 21682.4 million. A decrease in deficit amount was encountered in 1997 only, then again trade deficit increased and this time an immense increase was encountered until 2008 with minor fluctuations. However, after 2008 trade deficit decreased with Canada at the notable amount, but increasing slowly and gradually. In the history of trade between United States and Canada, United States has never been in surplus condition and Canada has never been in deficit situation (USCB, b). 3. Import and Export between Canada and United States Figure 1: Import and Export between Canada and United States From the above figure, it can be monitored clearly that exports have been always lower as compare to imports since 1985, but the distance increased from 1999 and kept on increasing until 2008. This distance came at closer in 2013 and it is being hoped that United States will overcome from deficit situation and the trade condition with Canada and will able to maintain the balance between the trades of both countries (USCB, b). Products imported from Canada: Several products are imported by United States because America is the second largest country of the world in term of richness and considered as the biggest importer in world’s trade. However, things that are brought from Canada are $ 338.2 billion in amount and make 14.6% of overall United States. Imported products include spacecraft and aircrafts, oil, plastics, equipment such as different machines, engines and pumps, wood, electronic equipment, aluminum, paper, vehicles; and gums, precious metal, and coins. In 2010, United States purchased natural gas and petroleum from Canada and the combined value of that imports were $82.2 billion, which was higher than the imports of 2009 that was worth of $63.7 billion. Imports of these products are growing (SCR). In 2009, total imports of merchandise were consisted of 224.9 billion US dollar. Oil is the major product that is imported from Canada and $ 113 billion of total imports are spent on the purchase of oil in 2013 (World Richest Countries). United States economy is dependent upon oil and for this product; America is dependent upon other countries. Canada is amongst the largest producers of petroleum and comes at number five. However, it is considered that Canada is the third largest country in term of petroleum reserves after Venezuela and Saudi Arabia. In 2009, in order to strengthen the bilateral trade collaboration on the technologies of clean energy both countries established the “the green energy dialogue”. United States imported 90% of energy exported by Canada (Government of Canada). In 2006, the combined amount of gas and oil imports from Canada was $ 59.5 billion that increased in 2010 and went up to $ 63.9 billion. However, in 2013, this amount increased immensely in the account oil alone and in 2014 it is up to $ 76.3 billion (Government of Canada). United States imports different sorts of vehicles from Canada and in 2013, $ 56 billion has been spent for the purchase of vehicles. In 2009, United States 14.6 % imports were based on the purchase of motor vehicles, engines, and vehicles parts. However, an immense decrease in the imports of vehicles from Canada was encountered in 2009. In 2006, motor vehicles imported from Canada were amounted $ 47.1 billion however vehicles’ parts were of amount $ 16.9. Canada is suffering from the productivity issues in other sectors, but the automotive plants in North America are considered amongst the most competitive ones. An immense increase in the imports of plastic products has been encountered. America is a big importer of plastics products and spent $ 10.8 billion in this domain in 2013; in 2010, the amount on plastics’ imports was $ 4.1 billion, which was lower than 2006 plastics imports that were amount of $5.1 billion. America imports machinery from Canada that includes different machines, pumps, and engines; country spent 19.9 billion of US dollar in this area in 2013; in 2010, the total imports of machinery were amount of $ 6.6. The figures show constant increase in the imports of machinery. However, until 2006 United States was in export condition in term of machinery. United States is the top manufacturer of wood products and amongst the largest importers of wood. US imports large amount of wood from Canada and these imports are based on soft lumber, newsprint, and wood pulp (US Office of Technology Assessment, 15). America spent 8.2 billion of US dollar for the purchase of wood in 2013; this amount is greater than 2010 and 2006. In 2006, imports based on wood products were amount of $6.8 billion; however, an important reduction in imports of wood products was encountered in 2010 and imports of that year were amount of $3 billion. Wood purchase has been divided in to multiple sections therefore; collection of actual figures is not possible. Electronic equipment come under the major imports of United States and $ 8 billion have been spent on electronic equipment in 2013. However, electronic equipment were not the part of major imports before. Different metals that include coins, gems, and precious metals was encountered of dollar 7.6 billion. America spent 7 billion US dollar on the import of papers. Aluminum comes under the domain of major imports and United States spent 6.9 billion of US dollar on the purchase of aluminum. In 2006, the amount of aluminum products imported from Canada was $ 7.9 billion that decreased in 2010 and came up to $ 6 billion. However, the least amount is spent on the purchase of aircrafts and spacecraft and 6.6 billion of US dollar from the total amount of imports has been spent on these goods. In 2009, the exports of merchandise were consisted of $204.7 billion. Products exported to Canada: Total exports of United States in 2013, was $1578.9 billion. Canada is accounted for 300.3 billion exports of United States, which are 19.0 percent of total exports and higher than $7.7billion as compare to 2012 and 77% up from 2003 (USTR). If these exports are comparing to 1993 then United States exports to Canada are 319% higher (US Department of States). Goods that are exported to Canada include vehicles, machinery, medical technical equipment, steel and iron, etc. United States exports vehicles to Canada that made $ 51.7 billion of total exports made to Canada in 2013. However, United States 15.6 % exports were based on the sale of motor vehicles, engines, and vehicles parts in 2009. It has been encountered that in 2009 exports of vehicles from United States to Canada fell 40.7% in 2008. In 2006, motor vehicles exported to Canada were amount of $ 22.6 billion and vehicle parts was amount of $26.5 billion. In 2010, the exports of motor vehicles and their parts decline (Fergusson 2011& 2008). Machinery that includes engines and pumps makes 45.3 billion of United States dollars of total exports of Canada that are exported by United States. In 2006, United States exported general machinery and specific machinery that was amounting of $15 billion; in 2010 the amount was $13.4 billion. In 2013, United States exported oil to Canada that worth was $24.7 billion of total exports made to Canada. In addition, the total exports that were made to Canada were $300.2 billion. In 2010, the amount of exported oil and gas to Canada was $ 4.6 billion. Technical and medical equipment exports to Canada were worth of $9.4 billion of total exports in 2013, which is higher than 2006 because in 2006 the worth of these products was $5.2 billion. The exports based on steel and iron products were worth of $7.9 billion in 2013. However, products made up of iron and steel are worth of equal 6 billion of US dollar. In 2006, the amount of iron and steel products exported to Canada was $6.1 billion that increased in 2010 up to $ 6.7 billion. Medical equipment and technical equipment were worth of $9.4 billion of total exports made to Canada. However, lights, signs, and furniture exported to Canada were cost $5.4 billion. Canada is then second largest market for United States for the export of agricultural products. Agricultural products export to Canada was amount of $21.3 billion of total exports made to Canada. The leading products that are exported by United States to Canada include snack foods amounted $ 1.3 billion, fresh vegetables amounted $1.8 billion, fresh fruits amounted $1.8 billion, the worth of readymade food was $1.9 billion, and non-alcoholic beverages was worth of $1.2 billion. Excluding government and military services, the cost of services was $61.2 billion in 2012 that were exported to Canada, which were 4.7% higher as compare to 2011 and 145% more than 2002. The amount of 2012 exported services was far above (260% grater) than pre-NAFTA agreement. Vehicles are exported to Canada and imported as well this flow of parts occur because united states exports parts to Canada for assembly and then these assembled vehicles are exported back to united states by Canada. United States is the biggest importer of Canadian exports and it has been expected that until 2030 it will be remain at first position (HSBC). Pivot Investment Relationship between These Two Countries Canada is the hub for direct investment for United States. In 2012, the stocks of foreign direct investment of United States in Canada was $351.5 billion, it was a 6% increase as compare to prior year (USTR). Canadian non-bank holding companies, manufacturing sectors, and financing sectors such as insurance companies lead the direct investment of United States. However, the foreign direct investment of Canada in United States was account for $225.3 billion in 2012, which was 6.9% higher as compare to previous year. Banking sectors, manufacturing, and financing sectors lead the direct investment of Canada in United States. In 2011, services that were sold by United States owned associate were amount of $125.6 billion, while services sold in United States by Canada-owned companies were $74.6 billion (USTR). It has been encountered that how better the trade and investment relationship of Canada and United States are; it has been came across that the national security relations of Canada and United States are also amongst the strongest in the world. For fifty years, both of the nations have been working for the protection of North American airspace in opposition to criminal threats and terrorism. On February 4th 2014; beyond the border declaration has been made in order to strengthen the already strong relationship. The purpose of this declaration was (Cuckerman, Riley & Inserra): To encounter the threats as soon as possible; Combined cross-border enforcement of law; Enhance the Crucial cyber security, infrastructure, and emergency management. Enhance the jog creation, trade facilitation, and economic growth. Economy of Canada and United States Selected Comparative statistics, October 2014 Indicators Unites states Canada GDP (PPP) Per Capita 54678.167 units 44518.653 units Inflation average consumer price 237.563 125.211 Imports of goods and services % change 3.760 1.863 Exports of goods and services % change 2.840 5.227 Population (million) 318.523 35.467 Unemployment rate (% of total labor force) 6.292 6.972 Current account balance % of GDP -2.474 -2.671 Investment % GDP 19.348 24.288 Gross national savings % GDP 16.961 21.083 Source: International Monetary Funds The economic condition of both countries is good but it can be said that United States’ economic condition is better - in term of employment - than Canada because there is a great difference in population of both countries, United States population is far higher than Canada, but the unemployment rate of United States is lower as compare to Canada. Both countries are facing current account balance deficit. United States and Canada are the rich manufacturing economies and have common living standards, but economies of both countries differ in several ways. First United States gross domestic products are over than Canada. Both countries are following the free trade policies. However, as compare to United States, Canada’s policies are more interventionist policies. Both countries diverge in term of saving and investments. Canada is making higher investments as compare to United States. However, it has been encountered that gross national savings of Canada are higher as compare to United States, which shows that Canada’s economy is going well. It has been encountered that before the establishment of FTA with United States, Canada was used to of protecting its small scale manufacturing organizations through the implementation of tariffs. Both countries are in stable condition and having bright chances of growth in term on investments and trade. It can be expected that both countries for long time will be the world’s strongest trading partners due to the benefits they are sharing with each other through free trade agreement. 4. Definition of Trade and Trade Theories What is Trade? Trading is an old and basic concept of economy. Trading is a process of buying and selling of services and goods in which several parties are involved; these parties make voluntary negotiation of desired goods and services that another part possesses. In recent era, money is utilized as a medium of exchange that makes the trading process easy as compare to old concept of bartering. Types of trade: There are two sorts of trade internal trade and external trade. Internal Trade or domestic trade: Internal trade is also known as domestic trade or home trade; it includes retail trading and wholesale trading. This sort of trade is conducted within the geographical and political boundaries. International Trade or foreign trade: International trade is also known as foreign trade or external trade. International trade means to have an exchange of goods and services between two or more than two countries. International trade includes imports and exports. Theories of Trade There are several theories of trade, but some popular theories have been discussed below: 1. Heckscher-Ohlin theory of trade 2. David Ricardo theory of trade 3. Adam Smith theory of trade 4. Krugman model or theory of trade 1. Heckscher-Ohlin Theory of Trade: Heckscher-Ohlin theory of trade can be stated into two theorems that have been explained as follow: Theorem 1: trade theorem of Heckscher-Ohlin: A state specialized in commodity export and in production of those goods, that production requires serious utilization of its comparatively plentiful and low cost factors and imports those commodities that require intensive utilization of its comparative costly and scarce factors. Theorem 2: equalization of facto- price: According to the theory of this theorem, international trade take place due to equalization of factor cost across the borders through the equalization of homogenous factors’ productivity. This theorem is also known as Heckscher-Ohlin-Samuelson. Factor abundance refers to the country and factor intensity refers to goods. This economic model of trade is utilized in order to evaluate the equilibrium of trade between two or more countries. The purpose of this model is to emphasis the way through which countries can utilize their comparative advantage and exports goods and services that are in excess amount while emphasize on the imports of goods and services that are not produced within country in effective and efficient manners. 2. David Ricardo theory of trade: David Ricardo is known as the father of comparative advantage, his theory of trade is based on comparative advantage. According to David Ricardo theory, both countries involved in trade can make benefit due to opportunity cost. If one country produces vehicles, another may produce plastics goods in better ways, which means if country exports vehicles and imports plastics goods would be beneficial for both countries. This system can be related to barter system because barter system of trade solely depends upon opportunity cost. 3. Adam Smith Theory Of Trade: Adam is the world’s famous theorist of economic, the theory of free trade has been proposed by Adam smith first, and multiple international economists accept the importance of his concepts. According to the smith if foreign country offers a goods or services at lower cost than home country can produce it, it is beneficial to take advantage and exchange with the one a country made at home in efficient manners. In start, this view of smith was criticized a lot, but now economist have realized the importance and application of this view and respect the free trade theory of Adam Smith. The theory argued for economic growth and commercial openness, theory of Adam smith presents a base for the development of modern economic thought. 4. Krugman Model: Krugman presented the new trade theory. According to Krugman model, trade is done due to economic of scale and due to people love for verity, which means that if a country produces more output through utilization of least input will produce cheap products. However, one firm will produce same product in different manners that will satisfy the need of variety. According to this theory, firms can enhance the production within home country and can slowdown the costs. Companies can expand their production by supplying their differentiated products to other countries’ consumers by this means-lowering price and average cost. Therefore, people do trade for these reasons. Krugman theory is also known as “new” trade theory. Summary of All Theories and US-Canada Trade: All theories of trade can be summarized in four words gain from trade, comparative advantage, specialization, and opportunity cost. All economic theories has single explanation for wealth creation process results from trade, which is do what suits the expertise or in other words, produce things country is specialized in. It has been encountered that the trade between Canada is based on some features; countries do what they are specialized in and exchange that products in order to achieve the advantage of opportunity cost. These two countries are the best example of Adam smith “free-trade” theory. Both countries produce goods and services that are specialized in and able to produce with efficiency, and then exchange these products. The free trade agreement (FTA) is the evidence of the application of Adam smith’s theory of trade that somehow represents the barter system in which one commodity was exchanged for another. Through this application and agreement, countries eliminated the barriers of trade, they facilitated the fair conditions of competition, they loosen the condition for investments and provide feasibility to each other to get advantage, and they resolved the disputes and established the effective procedures. NAFTA (North American free trade agreement) is the evidence of advantage that was being achieved from free trade. Trade is done to improve the economic condition of the country and specialization, exchange of services and goods, and division of workforce is the central factors that contribute in the improvement of economic condition of the country. It has been encountered that increased productivity is a result of specialization and lead to the well-being of population that represents the healthy economic condition. The trade between United States and Canada represents the features of David theory (comparative advantage), according to this concept, both countries produce things they are specialized and comparatively better than each other with different margin are. Canada and United States in multiple things are specialized and have absolute advantage the example is investments of both countries. The reflection of Krugman theory can be seen in real world and it implies on the trade condition of United stated and Canada as well. As it has been examined by Hill berry and McDaniel (2002), the United States and Canadian trade grew between the period of 1992-2002, due to the effects of price, verity, and volume (Government of Canada, b). However, Heckscher-Ohlin theory of trade can be related to the trade condition that exists between United States and Canada. For example, Canada has oil in abundance that is exported to United States and United States fulfills its needs through the imports. However, undone motor vehicles or vehicles parts are exported to Canada by United States for their assembling and then the assembled vehicles are exported to United States because United States is not efficient in the assembling of vehicles as compare to Canada. Therefore, the application of Heckscher-Ohlin theory of trade is fit for the “US-Canada trade”. Lui (440-446) examined that in result of increased imports competition multiple firms producing several products reduced unimportant production and started focusing on core products. This effect came in result of trade liberalization. Gibson and Harris (521-529) examined that trade liberalization allow countries to close high cost plants, while allow lower cost plants to expand their manufacturing. These finding supports the concept of economy of scale that comes from the theory of Krugman. According to Chen and Beaulieu (43-72), it has been encountered that due to trade liberalization, the variety of products available at market increased by 60% in Canada and these findings supports the verity effects concepts of Krugman. 5. Conclusion: It has been encountered that Canada and United States share very closest trade relationship that is the world’s largest trade relation. Both countries have made agreement on free trade that is known as FTA (free-trade agreement) that was superseded by the new agreement called NAFTA. In order to take advantage from trade these agreement was signed; through these agreements both countries eliminate the trade barriers for services and goods; they enhanced the ground for efficiency and take full advantage of competitiveness. However, a sort of barter system trade has been encountered between the trades of both countries, but their trade does not represent the pure barter system. Both countries are different in term of economy; there is a huge difference in population. However, it has been encountered that Canada has greater investments and savings as compare to United States. United States is in deficit condition with Canada, and in order to improve this condition United States has to increase its efficiency. However, Canada is in surplus condition with United States trade. It has been encountered that the trade of United States and Canada accepts the application of multiple theories. However, Heckscher-Ohlin theory of trade can be related most. Both countries are taking comparative advantage from each other; they exchange things and take advantage of opportunity cost. It has been encountered that trade has been enhanced between these countries because of the verity of products produced. The impact of competition in Canada can be clearly observed by following the NAFTA. It has been encountered that 21% firm came into closer due to increased competition resulted in increased imports. May be this looks bad for short-term but this activity is good in long run because increased competition aloe efficient firms to expand their activities. These all happened due to trade liberalization. It has been encountered that United States and Canadian trade agreements are cause to close the non-exporter plants and encourages the exporter plants in order to get the economics of scale because it has been analyzed exporter plants allow country to have economic of scale. Works Cited Atlas. United States. 2014. Online. 26 Oct. 2014. atlas.media.mit.edu/profile/country/usa/ Chen, Shenjie (2006). “The Variety Effects of Trade Liberalization,” in NAFTA. Foreign Trade And International Trade Canada, 2006. 43-72. Chen, Shenjie, and Eugene Beaulieu. "The Variety Effects of Trade Liberalization." NAFTA 10 (2006): 43-72. Gibson, John K., and Richard ID Harris. "Trade liberalisation and plant exit in New Zealand manufacturing." The Review of Economics and Statistics (1996): 521-529. Government of Canada. (a). Canada and the United States. 2014. Online. 26 Oct. 2014. http://can-am.gc.ca/business-affaires/fact_sheets-fiches_documentaires/index.aspx?lang=eng Government of Canada. (b). Canadas State of Trade: Trade and Investment Update 2012. http://www.international.gc.ca/economist-economiste/performance/state-point/state_2012_point/2012_7.aspx?lang=eng HSBS global. Canada Trade Forecast Report 2014. Online. 26 Oct. 2014. https://globalconnections.hsbc.com/united-kingdom/en/tools-data/trade-forecasts/ca Liu, Runjuan. "Import competition and firm refocusing." Canadian Journal of Economics/Revue canadienne déconomique 43.2 (2010): 440-466. US Department of States. U.S. Relations With Canada. 2014. Online. 26 Oct. 2014. http://www.state.gov/r/pa/ei/bgn/2089.htm US Office of Technology Assessment. Wood use : U.S. competitiveness and technology. Online. 26 Oct. 2014. http://books.google.com.pk/books?id=ACENtUObysoC&pg=PA15&lpg=PA15&dq=import+and+exports+of+wood+and+wood+products+between+canada+and+US&source=bl&ots=vD979ZPVcq&sig=sE7LR9OADlpgUy-tcImdXKNTENQ&hl=en&sa=X&ei=mnJLVKyMOpfjasfLgIgJ&ved=0CB0Q6AEwAQ#v=onepage&q&f=false USCB. (a). Top Trading Partners - December 2013. Online. 26 Oct. 2014. https://www.census.gov/foreign-trade/statistics/highlights/top/top1312yr.html#exports USCB. (b). Trade in Goods with Canada. 2014. Online. 26 Oct. 2014. https://www.census.gov/foreign-trade/balance/c1220.html USTR. U.S.-Canada Trade Facts. 2014. Online. 26 Oct. 2014. http://www.ustr.gov/countries-regions/americas/canada World Richest Countries. Top US Imports. 2014. Online. 26 Oct. 2014. http://www.worldsrichestcountries.com/top_us_imports.html Zuckerman, Jessica, Bryan Riley, and David Inserra. Beyond the Border: U.S. and Canada Expand Partnership in Trade and Security. The heritage foundation. 2014. Online. 26 Oct. 2014. http://www.heritage.org/research/reports/2013/06/beyond-the-border-us-and-canada-expand-partnership-in-trade-and-security Read More