BISMARCK: Michael Flaherty, senior trade commissioner for the Canadian Consulate, discussed the trade relationship between Canada and the United States as well as the “Beyond the Borders Initiative” during the Central North American Trade Corridor Association annual summit held in late May in Bismarck.
Flaherty opened his presentation at the BSC National Energy Center of Excellence by expressing exactly how many products cross the Borders each day.
“Canada and the United States are each others largest trading partner,” said Flaherty. “About $1.7 billion crosses the Borders between Canada and the U.S. every single day, which is by far the largest two-way trade relationship in the world. This relationship supports over 8 million jobs in the United States, and Canadian companies have 17,000 businesses in the U.S. that employ over 600,000 Americans.”
Canada is roughly the size of California in terms of the trade market, according to Flaherty, yet they still consume the largest percentage of American exports.
“The reason behind that is that we’ve developed an integrated North American economy,” he said. “You can see this in terms of transportation infrastructure and the integrated supply relationship between companies. We make things together.”
In order to help drive home the concept that the neighboring countries “make things together,” Flaherty used a hamburger as an example of the integrated supply chain.
“The bun is baked in Michigan and the flour is from Saskatchewan. The beef is from cattle born in Alberta, raised in Nebraska and processed in Colorado. The bacon is from pigs raised in Manitoba and processed in Iowa. The lettuce is from Arizona, the tomatoes are from Ontario, the mushrooms are from British Columbia, the onions are from Washington and the ketchup is from Ohio. So next time you take a bite of a hamburger, what you’re really looking at is a perfect example of the integrated trade relationship between Canada and the United States,” said Flaherty.
Trade
According to the North Dakota Trade Office, North Dakota as a state trades to as many as 147 countries on a yearly basis, but their annual trade with Canada alone is greater than that of the other 146 countries combined. The same rings true with neighboring states, Minnesota and South Dakota.
Flaherty said the reason trade is so important is that exports make countries, states, cities, and businesses more competitive.
“Trade enables countries or states to do what they do best,” he said. “If you’re in Iowa, you process pigs, you don’t grow mushrooms. You don’t grow flour in Ontario, you do it in Saskatchewan. It enables communities, states, and cities to focus on what they do best.”
Beyond the Borders Initiative
the Borders Initiative, a shared vision between Canada and the United States for perimeter security and economic competitiveness, was declared in 2011 by President Obama and Prime Minister Harper of Canada.
initiative follows four key areas of cooperation, which are addressing threats early; pursuing effective solutions for trade facilitation, economic growth, and job growth; integrating cross-border law enforcement; and strengthening critical infrastructure and cybersecurity.
and the U.S.) have both come a long way as countries since 9/11,” said Flaherty. “After 9/11 there was the notion that security trumps trade and we’ve come to realize that we can do both. We can enhance trade and keep our borders secure.”
