STUDY CANADA Summer Institute presentation by Dr. Paul Storer (WWU)

1. Teaching About the
World’s Largest Trade Relationship
(AKA: 10 Things You Should Know About the Canadian Economy)
Study Canada Summer Institute 2012
Dr. Paul A. Storer
Source:http://sbadrinath.files.wordpress.com/2009/03/different26rqcu3.jpg?w=400&h=226

2. Some Questions of Interest
• Why is Canada so important?
• How does globalization affect an
economy?
• What happens when you trade with a
much bigger country?

3. 1. Canada is our largest trading
partner ….

4. 1. … and we share the world’s
largest bilateral trading relationship

5. WSJ, Dec. 31 2009

16. Country
% of
U.S.
Trade
% of
U.S.
Exports
% of
U.S.
Imports
Canada 16.2% 19.0% 14.2%
China 13.6% 7.0% 18.1%
Mexico 12.5% 13.3% 11.9%
2011 Trade Share Data

17. 2. Canada is the most
important export destination
for 70% of the 50 states

18. Source: http://www.canadainternational.gc.ca/washington/
Canada’s Rank for States’ Exports of Goods

19. 0
2
4
6
8
10
12
14
16
18
20
Share(%)
California Oregon Washington
State Export Shares in 2009
Canada
China
Japan
Malaysia
Canada
Mexico
Canada
China
Japan

20. 0
5
10
15
20
25
30
35
40
45
50
Share(%)
Michigan Ohio Pennsylvania
State Export Shares in 2009
China China China
Canada
Canada
Canada
Mexico
Mexico Mexico

21. 0
5
10
15
20
25
30
35
Share(%)
Colorado Georgia North Carolina
State Export Shares in 2009
China
China
Netherlands
Mexico
China
Canada
Mexico
Canada
Canada

22. Source: Kasoff, Drennen, & Storer Chapter

23. 3. Canada is the biggest
source of U.S.
petroleum imports

24. U.S. Petroleum Imports (2009)
(Source: U.S. Energy Info. Agency)

25. • Source: “The World’s Largest Trading Relationship”,
• Embassy of Canada.

26. •Source: http://www.pse.com/energyEnvironment/EnergySupply_NaturalGasProfile.aspx

27. Source:
Economist.com

29. Oil
Sands
Reserves
• Source:
• www.ubc.ca

30. • Source: www.guardian.com

35. Source: www.latimes.com

36. http://nationalpostcomment.files.wordpress.com/2011/11/keystone-pipeline.jpg?w=620

39. B.C. Carbon Tax Program

40. 4. Canada’s economic base
has evolved over time and
economic policy is more
“hands off” than in the 1970s
or 1980s

41. GDP Shares, April 2012

42. The Modern Canadian Economy:
Technology

43. Transportation
http://www.airlinereporter.com/
wp-content/uploads/2012/05/ascrj700.jpg

45. Adaptation: High-end Clothing

46. 1970s: Government Ownership of Petro-Can

48. 5. Canada-U.S. trade is
often about trading
“apples for apples” and
“making things together”

49. Making Things Together:
Specialization, Scale and
“Apples for Apples” Trade
Ford Edge:
Oakville, Ontario. Canada cbc.ca

50. North American Specialization
Ford Escape:
Kansas City, MO

52. SeaTac Airport Shuttle Trains:
•Source: http://www.visitingdc.com/images/seatac-train.jpg

53. SeaTac Airport Shuttle Trains:
Made in PA by a Canadian Company
•Source: http://farm4.static.flickr.com/3379/3198460812_79dd9093c2.jpg

54. 6. The Canadian economy is
strong and quite competitive
Source: The Economist

56. …Canada’s economy has
performed well under free trade

57. Unemployment Rates
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Jan-76
Jan-78
Jan-80
Jan-82
Jan-84
Jan-86
Jan-88
Jan-90
Jan-92
Jan-94
Jan-96
Jan-98
Jan-00
Jan-02
Jan-04
Jan-06
Jan-08
Jan-10
Canada
United States

58. Unemployment Rates
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Jan-76
Jan-78
Jan-80
Jan-82
Jan-84
Jan-86
Jan-88
Jan-90
Jan-92
Jan-94
Jan-96
Jan-98
Jan-00
Jan-02
Jan-04
Jan-06
Jan-08
Jan-10
Canada
United States

59. Unemployment Rates
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Jan-76
Jan-78
Jan-80
Jan-82
Jan-84
Jan-86
Jan-88
Jan-90
Jan-92
Jan-94
Jan-96
Jan-98
Jan-00
Jan-02
Jan-04
Jan-06
Jan-08
Jan-10
Canada
United States

60. Unemployment Rates
2
3
4
5
6
7
8
9
10
11
Jan-00
Jul-00
Jan-01
Jul-01
Jan-02
Jul-02
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Canada
United States
May 2012 - Canada: 7.6%, United States: 8.2%

61. Total Employment
(January 2007 = 100)
94
95
96
97
98
99
100
101
102
103
104
Jan-07M
ar-07M
ay-07Jul-07Sep-07N
ov-07Jan-08M
ar-08M
ay-08Jul-08Sep-08N
ov-08Jan-09M
ar-09M
ay-09Jul-09Sep-09N
ov-09Jan-10M
ar-10M
ay-10Jul-10
Canada
United States

63. http://g-mond.parisschoolofeconomics.eu/topincomes/

64. •Top 1% Share in 2007
•18.3%
•13.8%

65. 7. Trade isn’t just goods:
Trade in services and foreign
investment

67. http://www.findfamilyfun.com/birch-bay-washington.htm

70. •http://www.bloomberg.com/video/91845099/

71. •The Economist, U.S. Edition, May 23, 2009

72. Source: http://hockeygonewild.wordpress.com/2010/03/09/
Identify the symbols and logos:

73. http://www.flickr.com/photos/achimh/4368189976/sizes/l/in/photostream/

74. 8. Canada had a long history
of protecting its economy from
U.S. competition

75. Source:
Hart, M.
A Trading Nation

76. The Tariff
“Wall”
“Greedy”
American
Wolves
Happy
Canadian
Farmers
And
Manufacturers
Sir
John A.
Macdonald

77. Source: Hart, M. A Trading Nation

78. Source: Hart, M. A Trading Nation

79. •http://news.nationalpost.com
•/2012/03/31/tempest-in-a-
•yogourt-cup-u-s-based-
•chobani-seen-as-threat-to-
•local-makers/

80. 9. Canadians and Americans
fear the border – but for
different reasons

81. Trade, Culture, and Sovereignty
• Source: Aislin
Cartoon
• Montreal Gazette
Source: Molson
“I Am Canadian” ad

82. Mayflower Pub, Elgin St., Ottawa, July 3, 2012

85. •http://si.wsj.net/public/resources/images/OB-TN162_HEALTH_G_20120625193406.jpg

86. •Canada: A Source of
“Vulnerabilities?”
Source: Bellingham Herald
• Source: ABC news • Source: International Border Commission

88. 10. Canada-U.S. Trade:
What Will the Future Bring?

89. Whither Canada-U.S. Trade?
U.S. Share of Canada’s Goods Exports

92. Successes or Failures?
Source: http://www.thestar.com/opinion/editorialopinion/article/1029360--the-cost-of-freer-trade

93. http://www.dol.wa.gov/images/DLsamples-EDLLg.jpg