Canada Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in canada, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Market Overview
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The United States and Canada enjoy one of the world’s largest and most comprehensive trading relationships that supports millions of jobs in each country and constitutes a US$2.11 trillion bilateral trade and investment relationship. Canada is traditionally the top U.S. export market, accounting for 16.8% of all U.S. goods exports in 2024. In 2024, Canada was the United States’ second largest trading partner.  Canada and the United States trade over US$2.5 billion in goods and services daily. Two-way trade in goods and services totaled US$917.4 billion in 2024, and 2024 bilateral investment stock totaled US$1.19 trillion.

U.S. exports of goods and services to Canada were nearly US$441 billion in 2024, a decrease of 0.2% from 2023. Thirty-two U.S. states rank Canada as their number one export market, and Canada serves as either the first or second export market for 44 U.S. states. In 2024, U.S. exports to Canada exceeded total U.S. exports to Australia, Brazil, China, India, and Vietnam combined. Whether your company is a first-time or seasoned exporter, Canada should be a key component of your company’s export growth strategy. 

In 2024, U.S. exports of goods to Canada totaled US$350.4 billion. The top export categories (2-digit HS) in 2024 to Canada were: vehicles (US$56.6 billion); nuclear reactors, boilers, machinery (US$53.2 billion); electric machinery (US$29.6 billion); mineral fuel, oil (US$28.1 billion); and plastics & plastic articles (US$15.4 billion). 
U.S. exports of services to Canada were valued at US$90.3 billion in 2024. Leading services exports from the United States to Canada were in the business services, professional and management consulting services, and travel sectors. 

In 2024, Canada remained a top export market for U.S. agricultural exports, totaling US$29.5 billion. Leading categories in 2024 included baked goods; fresh vegetables; fresh fruit; food preparations; non-alcoholic beverages (excluding juices); ethanol (non-beverage); dog & cat food; chocolate & cocoa products; dairy products; and beef & beef products. 

In most industry sectors, Canada has historically had a highly receptive, open, and transparent market for U.S. products and services. Recently, Canada and many of its provinces have been limiting procurement opportunities for U.S. companies and banning U.S. alcohol, and Canadian citizens have been opting out of buying American products. Canada also maintains retaliatory tariffs on approximately US$43 billion worth of U.S. goods in addition to certain automobiles and parts. Several provinces have taken additional steps: for example, some provincial liquor boards have removed U.S. alcohol products from shelves, and Ontario announced restrictions on certain U.S. companies’ participation in provincial procurement. However, the countries still share a similar lifestyle and close geographic proximity, engendering a certain level of cultural familiarity. Canada has two official languages: English is spoken predominantly (76% nationwide) with a significant French-speaking minority (22% nationwide). Most French speakers are concentrated in Quebec (84% of the province) and New Brunswick (30% of the province). 

Investment also plays a significant role in the bilateral relationship. Canadian foreign direct investment (FDI) in the United States was US$811.71 billion in 2024, making Canada the United States’ second-largest source of FDI (by country of ultimate beneficial owner) and the largest source of new investment in 2024. The United States is also Canada’s top source of FDI, with investment stock from the United States totaling US$459.60 billion in 2024 (by country of foreign parent). As of 2022, U.S. affiliates of Canadian-owned firms employed 887,900 Americans, invested US$1.7 billion in innovative research and development, and contributed US$16.8 billion in U.S. exports.

The United States, Mexico, and Canada are parties to the United States–Mexico–Canada Agreement (USMCA), which entered into force on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). The USMCA is a 21st century, high-standard trade agreement, supporting mutually beneficial trade resulting in freer markets, fairer trade, and robust economic growth in North America.  A six-year joint review of the USMCA is set to take place in July 2026, and as of September 16, 2025 U.S. companies are invited to provide comments on the agreement during a 45-day consultation period.

Political & Economic Environment:  See the U.S. State Department’s website for background on the country’s political environment.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

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The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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