1. What imports does Canada receive from the United States? 2. What has been the effect of NAFTA on Canadian business? 3. What effect has Canadian trade had on Washington State? 4. How does the Washington State aircraft industry benefit from trade relations with Canada? Do you think open trade with Canada has a positive or negative effect on the United States? Why or why not?

1. What imports does Canada receive from the United States?

Canada mostly imports fuels, machinery, vechicles, and plastics.

2. What has been the effect of NAFTA on Canadian business?

The effect of NAFTA on Canadian businesses has been mostly positive. Canada's businesses have been able to access the large markets of the United States and Mexico, and have attracted investments from these two countries.

3. What effect has Canadian trade had on Washington State?

Canada is the main import partner of Washington State. 31% of imports in the state come from Canada.

Canada is the second export partner of Washington State, after China. Around 20% of exports of Washington State go to Canada.

4. How does the Washington State aircraft industry benefit from trade relations with Canada?

The main export of Washington State being aircraft goods (mainly Boeing but also other companies), and Canada being the second export partner of the state, the aircraft industry in the state benefits from trade relations with Canada simply by having a sizeable market in the vicinity, with a high income population, where to export the goods produced by this industry.

Do you think open trade with Canada has a positive or negative effect on the United States?

Open trade with Canada has a positive effect on the United States. International trade is economically benefitial to all countries because it allows each country to specialize in what it does best.

This is known in economics as comparative advantage and leads to more economic efficiency.

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