NAFTA: Ports to Plains · 2018-02-18 · Canada‐united states Trade • In 2016, bilateral trade...
Transcript of NAFTA: Ports to Plains · 2018-02-18 · Canada‐united states Trade • In 2016, bilateral trade...
North America Advocacy – August 31, 2017
NAFTA: Ports to Plains
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CANADA‐ UNITED STATES TRADE
THE GREAT AMERICAN HAMBURGER
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.
AIR TRACTOR / PRATT & WHITNEY
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U.S. Crude oil imports
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
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
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
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)
North American Trade relationship
Source: U.S. Bureau of Economic Analysis / March 2017 U.S. International Trade in Goods and Services Report
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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.
NAFTA IN NUMBERS
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
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
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
North America Advocacy – August 31, 2017
NAFTA: Ports to Plains