Home Trade and Investment State Trade Fact Sheets 2005 Michigan

Michigan

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• 174,000 Michigan jobs are supported by Canada-U.S. trade
• Total Canada–U.S. merchandise trade: $411 billion
• Canada–U.S. trade supported 5.2 million U.S. jobs
• Bilateral trade between Canada and Michigan generated $70 billion in 2004, an increase of 8% from 2003

Top export destination...
Michigan shares a unique trading relationship with its northern neighbor. Over 60% of the Great Lakes State’s foreign trade is directed across its northern border. This relationship greatly outweighed the state’s other foreign trade partnerships, accounting for more exchange than all of Michigan’s other trading partners combined. Similarly, Canada traded more with Michigan than any other U.S. state, generating over $48 billion in revenue in 2004. This mutually beneficial relationship is dominated by trade in transportation products, contributing to the strong automobile industry on either side of the border.

Driving the economy...
Motor vehicle parts led the Great Lakes State’s exports to Canada in 2004, capturing a third (33%) of Michigan’s total exports north of the border. Related goods accounted for nearly half of the state’s remaining exports to Canada: automobiles (12%), trucks (9%), motor vehicle engines (7%), and motor vehicle engine parts (2%). As a sector, transportation goods were the source of over half ($13.7 billion) of Michigan’s export revenue in 2004.

Similarly, Michigan’s primary imports from Canada originated from the transportation sector with over half of the total incoming goods from automobiles alone (50%). Trade in trucks (15%), motor vehicle parts (9%), and motor vehicle engines & parts (4%) consumed the majority of the remaining import market. Transportation goods totaled $38.8 billion, over three-quarters of the total Canadian goods entering the state in 2004.

Strong support...
Metals was the 2004 runner up in bilateral trade between the Great Lakes State and its northern trading partner, contributing to a total of $3.6 billion in two-way trade. Aluminum was the state’s dominant metal import from Canada, but accounted for less than 1% ($371 million) of Michigan’s total Canadian imports.

Energizing trade...
Cross-border flows of energy were valued at $3 billion, or 4% of total Michigan-Canada trade in 2004. Primary energy imports from Canada included natural gas ($1.2 billion) and petroleum and coal products ($0.6 billion). State exports were led by crude bituminous substances worth $1 billion.

Next-door neighbours...
Michigan and Canada enjoy an amicable tourism partnership. 1.7 million Michiganians visited their nothern neighbors in 2004, second only to travelers from New York. Canadian visits to the Great Lakes State totaled 1.1 million and generated $166 million for Michigan.

MichiganLeading Exports to Canada
2004, in millions of U.S. dollars

• Motor vehicle parts, not including engines ($7,083)
• Automobiles ($2,526)
• Trucks ($1,870)
• Motor vehicle engines ($1,542)
• Unshaped plastics ($489)
• Motor vehicle engine parts ($476)
• Steel, plate, sheet & strip ($416)
• Air conditioning & refrigeration equipment ($265)
• Furniture & fixtures ($205)
• Bolts, nuts & screws ($189)

Michigan's Leading Imports from Canada
2004, in millions of U.S. dollars

• Automobiles ($24,541)
• Trucks ($7,314)
• Motor vehicle parts, not including engines ($4,421)
• Motor vehicle engines & parts ($1,867)
• Natural gas ($1,230)
• Petroleum & coal products ($551)
• Softwood lumber ($417)
• Basic metal products ($404)
• Aluminum, including alloys ($371)
• Steel, plate, sheet & strip ($311)

Canada-Michigan Success Stories

The Canada-US-Ontario-Michigan Border Transportation Partnership is an initiative created to facilitate the safe, secure and efficient movement of people and goods across the Ontario-Michigan border as well as to promote the economy on both sides of the border. Products of the Partnership include the Binational Process—an initiative created to determine the optimum location for another Windsor-Detroit border crossing—and the coordination of border control systems such as the harmonization of Intelligent Transportation Systems and initiatives like Free and Secure Trade (FAST).The North American automotive industry, concentrated in Ontario and Michigan, ensures that there are a multitude of opportunities for cross-border investment, and strong economic partnership between Canada and Michigan. As a result, interdependence between Canada and Michigan has developed to the extent that Canada’s exports to Michigan is equal to the value of goods Canada exports to the rest of the world outside the United States.

Michigan-Canada Facts at a Glance:

• State jobs supported by Canada–U.S. trade: 174,000

June 2005

For more information on Canada's trade with Michigan, please contact:
Consulate General of Canada
600 Renaissance Center, Suite 1100
Detroit, MI 48243-1798
Phone: (313) 567-2340   •   Fax: (313) 567-2164
www.detroit.gc.ca

Sources: Merchandise trade and tourism figures are from Statistics Canada, converted at the rate of US$1.00=C$1.3015. Job numbers are based on 2001 data from a 2003 study by Trade Partnership Worldwide commissioned by the Canadian Embassy. Canada's export ranking is from the World Institute for Strategic Economic Research (WISER). All figures are in U.S. dollars. Figures may not add up due to rounding.

• Read the 2004 state trade figures
• Read the 2003 state trade figures
• Read the 2002 state trade figures