The trade and economic relations between Canada and the United States The United States is Canada's largest trading partner and the largest market for Canadian goods. The Canada-US Free Trade Agreement (1989) and the North American Free Trade Agreement (1994) were both instrumental in increasing market opportunities for Canadian exporters in the United States. Ultimately, however, it is Canadian exporters – of all sizes and in all sectors – who make this relationship as effective as it is. In 2003, Canada exported about C$365 billion worth of goods and services to the United States, while it imported nearly C$280 billion from its southern neighbor. In fact, in 2003 U.S. exporters sold more goods to Canada than to the European Union. By analyzing just a few specific aspects of our trade with the United States, we find that: In 2003, bilateral trade in goods and services between our two countries reached 1.8 billion Canadian dollars per day. Canada is the United States' largest trading partner, absorbing 19.2% of US goods and services in 2003. In 2003, Canada was the largest export market for 37 US states. In 2002, Canadian business investments in the United States were valued at approximately C$202 billion. U.S. business investments in Canada were valued at just over C$224 billion. We could add many more statistics, anecdotes and facts, but these numbers are enough to show how the economies of our two countries are intertwined and to demonstrate the scale of Canadian investment in Canada. -US Economic Relations1.3 Understanding Canada-US RelationsTrade, of course, is only one part of a larger network of relationships between our two countries. This network evolves in response to many complex influences, and exporters must consider how our two countries' ever-expanding and evolving relationships will affect their businesses. To give just a few examples: the events of September 11, 2001 and the resulting security measures have influenced border waiting times, packaging legislation, reporting requirements and many other export-related issues. Trade relations between Canada and the United States are not static. Political and business strategies and practices change on both sides of the border, and events – such as “mad cow disease” – occur that are beyond almost everyone's control. Many Americans are unaware of the political and economic value of the Canada-US relationship. , and as a result Canada is not a priority for them. The Government of Canada is very active in promoting relations with the United States and has expanded its US consular presence to help broaden and secure trade relations.