Home > About BNE > Press Room > 2009 Archive > August > U.S.-Canada trade gap narrows

U.S.-Canada trade gap narrows

by G. Scott Thomas

America’s trade deficit with Canada was its third-worst imbalance the past three years, but that trend seems to be changing in 2009.

The U.S.-Canadian trade gap totaled $8.57 billion during the first six months of this year, according to a new report from the U.S. Bureau of Economic Analysis. That was only the sixth-worst imbalance between America and another nation.

China, Japan and Canada, in that order, ran up the biggest trade advantages over the United States in 2006, 2007 and 2008.

China remains No. 1 this year, amassing a six-month gap of $103.05 billion in trade with the U.S.

Mexico, which was fourth last year, has moved up to second place with a six-month advantage of $21.17 billion. It’s followed by Japan ($17.95 billion), Germany ($11.52 billion), Ireland ($10.59 billion) and Canada.

The volume of U.S.-Canadian trade is monitored closely in Western New York, since Canada is far and away the largest international trading partner for companies in the Buffalo and Niagara Falls areas.

American companies exported $96.17 billion of goods to Canada during the first six months of 2009, but U.S. consumers purchased $104.74 billion of Canadian merchandise over the same period, resulting in a deficit of $8.57 billion.