Lesson 1 of 2 · 4 min read
Canada's economy depends on trade, especially with the United States, Canada is one of the world's ten largest economies and a member of the G7 group of leading industrialized countries, and its North American free trade relationship is now governed by the Canada-United States-Mexico Agreement (CUSMA).
Trade has shaped Canada's economy from its earliest days, and that is still true today.
Canada has always been a trading nation, and commerce remains the engine of economic growth. As the guide puts it, Canadians could not maintain their standard of living without trading with other nations. In 1988, Canada enacted free trade with the United States. Mexico became a partner in 1994 in the broader North American Free Trade Agreement (NAFTA). NAFTA was later replaced by the Canada-United States-Mexico Agreement (CUSMA) — called the USMCA in the United States — which entered into force on July 1, 2020, and remains the current trade agreement governing this partnership.
Canada has one of the ten largest economies in the world and is a member of the G7, the group of leading industrialized countries alongside the United States, Germany, the United Kingdom, Italy, France, and Japan. Russia was part of this group, then called the G8, until it was suspended in 2014.
Canada enjoys close relations with the United States, and each is the other's largest trading partner — the guide calls it the biggest bilateral trading relationship in the world. Over three-quarters of Canadian exports go to the United States. Canada exports energy products, industrial goods, machinery, equipment, automotive, agricultural, fishing and forestry products, and consumer goods every year. Millions of Canadians and Americans cross the border safely each year, along what is traditionally known as "the world's longest undefended border." At Blaine, in the State of Washington, the Peace Arch is inscribed with the words "children of a common mother" and "brethren dwelling together in unity," symbolizing this close relationship.
Key facts
Canada has always been a trading nation, and commerce remains the engine of economic growth.
In 1988, Canada enacted free trade with the United States.
Mexico became a partner in 1994 in the broader North American Free Trade Agreement (NAFTA), which was replaced by the Canada-United States-Mexico Agreement (CUSMA) when it entered into force on July 1, 2020.
canada.ca — Canada-United States-Mexico Agreement (CUSMA)Canada has one of the ten largest economies in the world and is a member of the G7, the group of leading industrialized countries alongside the United States, Germany, the United Kingdom, Italy, France, and Japan. Russia was part of this group (then called the G8) until it was suspended in 2014.
canada.ca — The Group of Seven (G7)Canada and the United States are each other's largest trading partner, and over three-quarters of Canadian exports go to the United States.
The Peace Arch at Blaine, Washington is inscribed with the words "children of a common mother" and "brethren dwelling together in unity," symbolizing the close ties between Canada and the United States.
Answer all 3 to mark this lesson done.
1. In what year did Canada enact free trade with the United States, according to the guide?
2. In what year did Mexico join Canada and the United States in the North American Free Trade Agreement (NAFTA)?
3. What does the guide say about Canada's trading relationship with the United States?
HomelandCanada