Presentation on theme: "CANADA – UNITED STATES: Secure Borders & Open Doors Capital Corridor Initiative June 14-15, 2010 Mike Flaherty Senior Trade Commissioner Canadian Consulate."— Presentation transcript:
CANADA – UNITED STATES: Secure Borders & Open Doors Capital Corridor Initiative June 14-15, 2010 Mike Flaherty Senior Trade Commissioner Canadian Consulate General Buffalo
2 Canadians and Americans share common challenges Global financial challenges The emergence of powerful economies such as China and India The need to stimulate economic growth and promote job creation The need to maintain security
3 And we have an established relationship upon which we can build… Canada is by far the largest buyer of US goods: over USD $260 Billion in More than 7 million U.S. jobs are supported by trade with Canada (2005) More than 16,000 company locations in the U.S. are Canadian owned: they employ 557,000 Americans (2009) For every $1 worth of goods China buys from the U.S., Canada buys almost $4 ($3.77). More than 50% of our bilateral trade moves by truck. …we can use this to strengthen both countries.
4 Canada-U.S. trade Canadas trade in goods and services with the U.S. is more than twice the size of its trade with the rest of the world. Source: Statistics CanaaSource: Statistics Canaa The U.S. #1 trading partner = Canada REGIONAL SHARES OF CANADAS TRADE IN GOODS AND SERVICES, 2004 AND 2008 (PERCENT) ExportsImportsTotal Trade World100.0 US EU Japan Other OECD Non- OECD
5 Our Solid Foundation Almost a fifth of our merchandise trade is in automobiles, trucks and parts: one of the worlds largest single integrated industrial value chains; More than half of total merchandise trade, including a wide assortment of materials and products (i.e. plastics, machinery, medicines, equipment), is used as inputs for other goods; Close to 29% of Canada – U.S. trade in goods represent intra-firm trade according to the U.S. Bureau of Economic Analysis … our trade is based on the fact that we make things together!
6 Our Connectivity Rail From an infrastructure perspective, the border is not obvious Road Power
7 Physical integration supports a huge trade in energy… 2008 was the 17 th consecutive year in which Canada has been the largest supplier of energy to the U.S. The single most reliable and secure energy partner to the United States. In 2008, energy exports to the U.S. equalled 92.9% of Canadas total energy exports. The value of crude and non-crude oil supplied to the U.S. by Canada was USD $76.4 billion. This trade will continue well into the future since Canada contains an estimated 178 billion barrels of recoverable oil, second only to Saudi Arabia. North American Gas Pipeline Grid North American Crude Oil Pipeline Grid
8 The Canada-U.S. relationship creates jobs for Americans… For 35 of the 50 states, Canada is their most important export market; These states are not confined to the border, but are spread across the entire country; It is estimated that Canada-U.S. trade supports more than 7.1 million U.S. jobs. (2005)
9 The size and diversity of our relationship hides a significant constraint… Most of our trade flows through only a few border crossings
10 Commitment to a safe and secure Canada – U.S. border Canada and the U.S. have a long history of cooperation and consultation on security measures at our shared border Canada is investing in border infrastructure to increase security and economic prosperity Our goal is to facilitate the smooth flow of legitimate goods and people while ensuring a secure border
11 The United States and Canada share the following border goals: Develop joint threat and risk assessments Advance initiatives that manage risk while facilitating the movement of legitimate goods and people Endeavour to share information Where necessary, ensure we have the separate systems to protect the border Expand integrated law enforcement operations Leverage resources between our 2 countries
12 Canada and the U.S. are cooperating to ensure the border remains a highway and not a barrier… FAST (fast movement of pre-approved eligible goods by truck) NEXUS (special program for frequent travelers) Harmonized commercial processing for commercial shipments (e-manifests) Implemented the "24-Hour Rule" for marine shipments destined to North America (advanced cargo notification) Improved infrastructure and border processing times SMART borders will enhance security while improving economic efficiency
13 Conclusion In a period of profound adjustment, it is important to recognize a vital source of wealth creation. North American economic integration has contributed to the creation of new jobs, new economic opportunities, and new sources of competitive advantage. During a period of global uncertainty, our relationship is a foundation for strengthening both countries. Maintaining efficient physical linkages is key to our mutual competitive advantage.