With binational tensions unusually high, trends in key Midwest sectors are reminder of value of U.S.-Canada partnerships

Recent headlines have pointed to some of the strains (a mix of new tensions and a flare-up of longstanding conflicts) in the U.S.-Canada relationship. There have been proposed U.S. tariffs on steel, harsh words exchanged on Canadian dairy policy, and threats by President Donald Trump to end the North American Free Trade Agreement.But dig a little deeper, and a much different story emerges — one of economic interdependence and cooperation in key areas such as energy and the environment.“The relationship at the provincial-state level is probably as strong, if not stronger, than it has been since the mid-1980s,” says Carlo Dade, director of the Canada West Foundation’s Trade and Investment Centre, pointing, in particular, to the deeper relations built between state governors and provincial premiers.Canada and the United States share much more than the largest binational border in the world; their peaceful relationship has contributed to economic growth in both countries as well as to the development of an intricate, integrated trading partnership.Canada is the largest purchaser of U.S. exports (goods and services combined) in the world; likewise, the United States is Canada’s largest trading partner. According to the U.S. Trade Representative, trade in goods and services between Canada and the United States totaled $674 billion in 2017, with U.S. exports to its northern neighbor exceeding imports.Services, a sometimes overlooked part of the trading relationship, produced this $8 billion surplus for the United States. In Illinois alone, for example, $2.6 billion worth of business, professional, technical, financial and other services were exported to Canada last year.On the goods side, several states in the Midwest have particularly close economic ties with their Canadian neighbors, thanks to this region being a hub of production activity related to the making of cars, industrial engines, plastics, food and energy products.