Short Answer
Canada heavily relies on the U.S. as its primary export market, with over 80% of exports going there. Trade agreements like the Free Trade Agreement and NAFTA have bolstered this relationship by reducing barriers, while exports to regions like Mexico and Europe remain much lower in volume.
Step 1: Understand Canada’s Primary Export Market
Canada’s main export market is the United States, which receives over 80% of all Canadian exports. This significant dependency demonstrates the importance of the U.S. in Canada’s economy and global trade relationships.
Step 2: Recognize the Importance of Trade Agreements
The strong trade relationship between Canada and the U.S. has been enhanced by various trade agreements, notably the Free Trade Agreement signed in 1989 and other agreements under NAFTA. These agreements have facilitated trade by reducing tariffs and barriers, leading to increased export volumes.
Step 3: Compare Exports to Other Regions
While Canada does trade with other regions, such as Mexico and Europe, the volume of exports to these areas is significantly lower compared to the U.S. Specifically, the share of exports to these other partners is much smaller, emphasizing Canada’s reliance on the U.S. market.