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NAFTA Advantage 

Deeply Integrated with the Lucrative U.S. and Mexican Markets

Assured access to an enormous market of 453 million consumers—With the North American Free Trade Agreement (NAFTA), the Canadian economy is deeply integrated with those of the United States and Mexico. The three countries together form an enormous market of 453 million consumers and a GDP of US$17.1 trillion (PPP basis), and global companies locating in Canada have assured access to this lucrative market.

Source: CIA World Factbook. 2010. Purchasing Power Parity (PPP) equalizes the purchasing power of consumers in their home countries for a basket of goods.

Unparalleled proximity to the U.S. market but at lower costs—Canada’s population is concentrated near the border with the United States, with 17 of Canada’s 20 largest cities located within a 90-minute drive of the border.

Many Canadian production hubs are actually closer to U.S. markets than American production sites. For example, production locations in Quebec and the industrial heartland of south-western Ontario are often closer to the huge American markets around New York, Boston, and Chicago than popular American hubs like Atlanta, GA, and Raleigh, NC. All of these make Canada an attractive location for global companies who want to do business with the U.S. but at a lower cost.

Streamlined Border Transportation System—The North American market is serviced through a well-integrated transportation system, and the border system is one of the world’s most efficient. Automated permit ports, transponder identification systems and joint processing centres are being tested and deployed for easy movement of goods across the Canada-U.S. border. More than US$1.7 billion in goods and services cross the Canada-U.S. border every day, and Canada is America’s #1 trading partner.