Canada–United States trade relations

Although there is some dysfunction between the countries, especially in the area of automobiles and agriculture, the trends are negligible as the agreement has arguably been a boon for all nations involved.

The United States placed Canada on its Special 301 Report intellectual property rights enforcement (although under the mildest category of "rebuke").

[5] One ongoing and complex trade issue involves the importation of cheaper prescription drugs from Canada to the United States.

The dispute has had its biggest effect on British Columbia, the major Canadian exporter of softwood lumber to the United States.

The price charged to harvest the timber (the "stumpage fee") is set administratively rather than through a competitive auction, as is often the practice in the United States.

Due to Trump's tariff threats, Ontario Premier Doug Ford proposed halting US liquor imports.

In addition to potentially cutting power to Michigan, New York state, and Minnesota, the Ford government is now seeking to restrict exports of critical Canadian minerals needed for electric vehicle batteries and the supply chain.

relationship is demonstrated by impressive bilateral trade of approximately $1.9 billion a day, along the world's longest undefended border.

Furthermore, the U.S. Energy Information Administration (EIA) forecasts slower growth in U.S. oil and natural gas consumption in the coming decades until 2035.

Consequently, the United States no longer appears to be an unlimited market for Canadian energy, leaving Canada seeking new export destinations.

Both Canada and the United States are increasingly reliant on foreign investment to develop their resource sectors, with Asia serving as an important source of capital.

Asian investors initially focused on project investments as minority joint venture partners but are showing increasing interest in owning production companies.

The major difference is that the U.S. media market is more than 15 times larger, meaning that the Americans enjoy greater economies of scale.

One source of tension is a difference in philosophy: the Canadian position is that its culture is a prerequisite for safeguarding its nationhood and should thus be excluded from free trade agreements, whereas Americans negotiators see media as just another commodity.

There have also been disputes over the generous tax credits that the Canadian federal and provincial governments give to television and film productions.