nafta: ports to plains · 2018-02-18 · canada‐united states trade • in 2016, bilateral trade...
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North America Advocacy – August 31, 2017
NAFTA: Ports to Plains
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CANADA‐ UNITED STATES TRADE
THE GREAT AMERICAN HAMBURGER
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AIR TRACTOR / PRATT & WHITNEY
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THE NORTH AMERICANFREE TRADE AGREEMENT
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Canada – A RELIABLETRADING PARTNER
Source: “The Changing Landscape of Global Trade: A Canadian Perspective”, Presentation at SAIS – Johns Hopkins School of Advanced International Studies, February 2015, Embassy of Canada to the United States
• Population of 36 million spread along the longest border in the world.
• Canada and the United States share a 5,000 mile border.
• Trade allows for more choice and lower costs.
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Canada – A top customer for 48 states
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Canada – A RELIABLETRADING PARTNER
• Vast reserves of natural resources, including the third largest oil reserve in the world.
• Strong manufacturing industry with comparative advantages in high‐tech sectors.
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AIR TRACTOR / PRATT & WHITNEY
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U.S. Crude oil imports
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Canada‐united states Trade
• In 2016, bilateral trade exceeded US$635 billion;
• U.S. benefited from a US$8.1 billion surplus with Canada in goods and services in 2016;
• Over US$1.7 billion worth of goods and services cross our shared border every day.
Source: “The North American Free Trade Agreement (NAFTA)”, Presentation by Trade Remedies and North America Trade Division (TNE), March 2017
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Canada‐united states Trade
Nearly 9 million U.S. jobs depend on trade and investment with Canada.
Canadian companies operating in the U.S. directly employ 500,000 Americans.
Trade with Canada supports jobs in every Congressional District.
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Canada‐united states trade
• 78% of total U.S. imports from Canada are used to make goods and services in the U.S.;
• U.S. inputs represent 10.1% of the value of Canadian exports to the rest of the world;
• Cost savings and increased productivity affordedby just‐in‐time delivery.
• In 2016, Canada was the number one export market for U.S. agricultural products.
Source: “Studying how the U.S. Benefits from Trade with Canada”, Prepared by Trade Partnership Worldwide, May 2016, Embassy of Canada in Washington
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What Agricultural products did the U.S. Export to Canada Last Year? (2016)
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Fruits & Nuts$3.4 Billion
Baked Goods$1.2 Billion
Vegetables$2.7 Billion
Beverages$2.2 Billion
Food Preparations
$1.2 Billion
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Integrated Economy: Food Supply Chains
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U.S.‐Canada Agricultural Trade:A Special Relationship
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Ag Trade: Texas and Canada• Texas‐Canada Agricultural trade = $1.7 billion in 2016• Texas exported $832 million to Canada, including:
– $282M in fruits and nuts– $139M in vegetables– $55M in prepared vegetables, fruits and nuts– $55M in fresh/frozen beef– $40M in sauces and condiments
• Texas imported $831 million from Canada, including:– $148M in fats and oils (incl. $119M in canola oil)– $116M in fresh/frozen meat (incl. $100M in beef)– $97M in baked goods– $86M in processed potatoes– $46M in alcoholic beverages
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THE NORTH AMERICANFREE TRADE AGREEMENT
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What is NAFTA?
The North American Free Trade Agreement (NAFTA) between Canada, Mexico and the United States came into effect on January 1, 1994;
NAFTA was built on the success of the 1989 Canada‐U.S. Free Trade Agreement (CUSFTA);
NAFTA’s objective is to facilitate cross‐border trade and investment opportunities;
Provided for the elimination of most tariffs on products traded among the three countries.
Source: “The North American Free Trade Agreement (NAFTA)”, Presentation by Trade Remedies and North America Trade Division (TNE), March 2017
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North American free trade agreement (nafta)
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North American Trade relationship
Source: U.S. Bureau of Economic Analysis / March 2017 U.S. International Trade in Goods and Services Report
CAN
US
The North American Free Trade zone is the
biggest economic region in the world with a regional
market of more than 480 million consumers
with a GDP of US$21.1 TRILLION.
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NAFTA IN NUMBERS
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Why nafta is a good deal for the united states
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INTEGRATEDPRODUCTION PLATFORMS
OPENED EXPORT MARKETS
LOWERED PRICES AND INCREASED
OPTIONS
BOOSTED ECONOMIC OUTPUT
INCREASED FOREIGN
INVESTMENT
REDUCED ENERGY
DEPENDACY
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NAFTA NEGOTIATIONS
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• Canada’s objective is to make a good agreement even better and to align NAFTA to new realities
• NAFTA renegotiation offers us an opportunity to integrate progressive, free, and fair approaches to trade and investment
• All three countries have committed to continuing discussions and engagement with stakeholders
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NAFTA NEGOTIATIONS
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• Canada has embarked with goodwill and a commitment to a win‐win‐win solution.
• The 1st round of negotiations were constructive and a good opportunity to share draft agreement text and present ideas for modernizing the 23 year old agreement
• The 2nd round took place in Mexico last week before moving to Canada for the third round at the end of September.
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THANK YOU
For more information visitwww.international.gc.ca
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North America Advocacy – August 31, 2017
NAFTA: Ports to Plains