Letter to the Editor: Why Canada matters

Canada is often thought of in terms such as friendly, polite, and snowy. We own them all, but we also have a compelling economic and trade story to tell in Arkansas — we are the Natural State’s largest export market. Arkansas exported $1.26 billion in goods and services to Canada in 2020, accounting for one-fourth of the state’s total export market. Topping the list is equipment and machinery, agriculture, transportation, and plastics.   

Beyond our common North American geography, we share values and interests, and multi-layered economic ties. I use the following concepts to describe our bilateral relationship and why Canada matters:

Prosperous: Canada and the United States share the largest trade relationship in the world. Our trade is balanced, fair, and supports growth and innovation in both our countries. Every day nearly $2 billion worth of goods and services cross the Canada-U.S. border. This prosperous economic partnership supports good paying jobs in both countries. More than 5,500 Canadian-owned businesses in the U.S. support nearly 900,000 jobs. We buy more goods from the U.S. than China, Japan and the U.K. combined. 

Integrated: Canada and the United States not only sell to each other, we make things together. Since the beginning of the pandemic, our countries have worked hard to maintain the two-way flow of goods, particularly medical supplies and critical inputs across our borders, while protecting our communities from COVID-19. On average, over 25% of a finished product we sell to you is American content. Just like most imports from Canada are used in production that puts Americans to work. These long-standing, binational supply chains have not only kept us safe, they have kept us competitive globally.

Reliable: Energy from Canada — more than from any other country — contributes directly to U.S. economic prosperity, security and environmental objectives. We are your largest and most secure supplier of all forms of energy, carried by 71 oil and gas pipelines and 35 transmission lines across our shared border. We are also investing in new technologies and infrastructure to be a global leader in clean energy and innovation. Canada is developing our energy resources; in a way that creates prosperity and engages communities, while reducing emissions and preserving the environment.

Steadfast: Canada has fought alongside the U.S. in defence of our common values through World Wars I and II, the Cold War, Korea, Balkans, the Middle East, and Afghanistan. In fact, Canadian Army, Navy, and Air Force officers are embedded throughout the U.S. military, and at the bi-national North American Aerospace Defence Command (NORAD) at all levels — protecting and defending our shared continent in search and rescue operations, interdiction of illegal narcotics, interception of non-allied military aircraft, and humanitarian assistance and disaster relief missions. In fact, Canadian and U.S. Air Forces undertake joint training exercises each spring at Little Rock AFB.

Arkansas has grown its FDI manufacturing workforce by 65.8 percent, nearly double the national average, and Canada plays an outsized role in this story. Nearly 50 Canadian-owned companies operate right here in Arkansas, and these companies account for almost 4,300 jobs throughout the state. These companies are driving innovation and prosperity in sectors ranging from minerals and metals to timber manufacturing.

On July 1, as we celebrate the first anniversary under the United States-Mexico-Canada Agreement (USMCA), Arkansas businesses have continued access to duty free supply chains from Canada. Previously known as the North American Free Trade Agreement (NAFTA), the updated agreement preserves key elements of NAFTA, modernises provisions to address 21st century trade challenges, reduces red tape at the border, and provides enhanced predictability and stability for workers and Arkansas businesses.

Though we may be separated by more than 1,000 miles, we are closely connected by our shared values and interests, coupled with powerful, multi-layered economic ties. As Arkansas forges ahead on the path to recovery, Canada should remain front of mind as a longstanding friend, partner, and ally.

Rachel McCormick

Consul General of Canada to Arkansas