(December 14, 2007) The California Chamber of Commerce yesterday hosted His Excellency Michael Wilson, Canadian Ambassador to the United States, at an international luncheon forum.
Ambassador Wilson discussed U.S-Canada trade in the Northern hemisphere and worldwide and the need to maintain a secure border without stifling trade.
Among the more than 65 guests who greeted Ambassador Wilson were California government officials and businesspeople from California and Canada, including representatives of agriculture, transportation, manufacturing and technology.
U.S./California Trade with Canada
Canada continues to be California's number two export market. California exports to Canada increased by $1 billion in 2006, from $13.2 billion to $14.2 billion. Two-way trade was worth more than $37 billion in 2006. California's exports to Canada are driven by computers and electronic products, which account for 32 percent of all California exports to Canada. Key exports to Canada showing growth in 2006 include chemicals and crop production.
Wilson commented that there are more than 600,000 Canadians residing in California and contributing to the state’s economy.
In 2006, the United States exported more than $127 billion in goods alone. “Those numbers don’t include services, which make up a very large proportion of your economy,” Wilson said.
Tourism and regular visits with family and friends are an important force behind the economy, Wilson said. “Nearly two million Californians and Canadians crossed back and forth last year and they spend over 1.2 billion dollars.”
According to Wilson, the U.S. imports more oil and energy products from Canada than from any other country. Canada supplies more crude oil to the U.S. than Saudi Arabia and Iraq combined. “In other words, the safest and most abundant source of energy for the U.S. is just across the northern border, in very friendly hands,” Wilson said.
Free Trade
Trade and investment have flourished under the North American Free Trade Agreement (NAFTA), Wilson stated.
“The links between Canada and the United States are deep, diverse and complex,” Wilson said. “Some 300 agreements and treaties cement our mutual cooperation.”
Wilson compared the strong support for free trade in Canada and the United States: “Both countries have recently take steps to increase our presence in the Western Hemisphere,” Wilson said. “Like the U.S., Canada has negotiated separate free trade agreements -- with Chile and Costa Rica, for example. And negotiations and discussions are proceeding with several other Central and South American countries.”
 |
| His Excellency Michael Wilson, Canadian Ambassador to the United States and Susan Corrales-Diaz, CalChamber Board member, chair of the CalChamber International Trade Committee |
Trade between the U.S and Canada is vital to both nation’s prosperity. “During NAFTA’s first 13 years, trade among the NAFTA partners almost tripled from $304 billion to $903 billion,” Wilson said. “Two-way trade crosses the Canada-U.S. border at the rate of more than a million dollars a minute - over $1.6 billion a day.”
Trade with Canada supports some 7.1 million direct and indirect jobs across the U.S. As Wilson pointed out, one in 25 U.S. jobs depends on free and open trade with Canada.
“Look at it another way,” Wilson explained. “The number of men and women in U.S. jobs supported by trade with Canada is more than the total work forces of the counties of Los Angeles, Sacramento, San Francisco and Santa Clara combined.”
Canada is the biggest export market for U.S. products - four times as large as China, Wilson remarked. Canada ranked number one in 38 states as the leading export market for goods in 2006.
Canada-U.S. Border
As trade has expanded freely across the border, more and more industries, companies and their suppliers operate on both sides.
“Assembling the parts into a single car, can involve 18 border crossings, which has been made possible by NAFTA. Producing each part in the most efficient place can improve productivity, which leads to higher living standards,” Wilson said.
It also can mean a savings for California car buyers. California’s single largest import from Canada is automobiles -- more than $9 billion worth annually.
Wilson also spoke about the importance of maintaining a secure U.S.-Canada border without impeding the movement of people, goods and services.
“Every hour around the clock, well over 4 million dollars in trade cross California’s border to and from Canada,” Wilson said. “Trade creates jobs -- tens of thousands of jobs of well-paying jobs.”
In fact, about 832,000 jobs in California depend on the flow of goods and services across the Canadian border. “Canadian investment in California accounts for another 41,000 jobs in the state,” Wilson said.
The Canada-U.S. border itself is huge -- about the distance from Sacramento to Paris, Wilson noted.
“We must make sure that the border provides gateways to prosperity -- not cumbersome checkpoints that stifle our competitiveness,” Wilson said.
Above all, Wilson stressed, “Canada is the United States’ most important partner in economic growth.”
Background
Ambassador Wilson became Canada's 22nd Ambassador to the United States in March 2006. Before assuming his responsibilities, Ambassador Wilson was Chairman of UBS Canada, and operating division of UBSG, one of the world's leading financial institutions, where he oversaw all UBS operations in Canada, which included the Investment Bank, pension fund management, and Wealth Management businesses.
In 1979, Ambassador Wilson was elected to the House of Commons. In September 1984 he was appointed Minister of Finance, remaining in that position until May 1991. He then became Minister of Industry, Science and Technology and Minister for International Trade. During his tenure as a member of the Cabinet, Ambassador Wilson represented Canada at the International Monetary Fund (IMF), International Bank for Reconstruction and Development (IBRD), Organisation for Economic Co-operation and Development (OECD), General Agreement on Tariffs and Trade (GATT) and the Group of Seven (G-7) Ministers meetings.
Staff Contact: Susanne Stirling
Additional Materials
International Trade