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Illinois_2002

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In 1989, the Canada-U.S. Free Trade Agreement went into effect, phasing out all tariffs and many non-tariff barriers to trade. Beginning in 1994, the North American Free Trade Agreement (NAFTA) opened the Mexican market to Canada and the United States. Evidence of the benefits of free trade are clear as two-way trade in goods, services and income between Canada and the United States totalled $445 billion in 2001, the largest bilateral exchange in the world.

Canada is the Prairie State's largest foreign export market. In 2001, Canada bought $8.3 billion worth of goods from Illinois, 38% of the state's total foreign exports. Illinois bought $12.8 million worth from Canada for a total two-way trade of $21.1 billion. The exchange supported tens of thousands of jobs on both sides of the border.

Trains, boats and automobiles are the heart of the bilateral trade. Illinois sold more transportation equipment to Canada than any other category of products - $1.9 billion worth - including $408 million in automobiles, $711 million in motor vehicle parts and engines, and $364 million in railway rolling stock. It bought $1.6 billion worth of transportation equipment from Canada. This sum included $557 million in trucks, $382 million in motor vehicle parts and engines, $86 million in railway trains and $189 million in ships, boats and parts.

They supply each other's industries with machinery... Machinery was Illinois' second largest export sector in 2001, accounting for $1.5 billion in sales to Canada in 2001. This sum included $113 million worth of front-end loaders, $50 million in tractor engines and parts and $109 million in construction and maintenance machinery. The state bought $663 million worth of Canadian machinery, including $163 million worth of materials-handling machinery.

Equipment and materials needed for production. Illinois sold Canada $821 million worth of equipment and tools; $638 million in metals and basic metal products; and $929 million in chemical products, including $188 million in organic chemicals and $153 million in unshaped plastics. The state bought $574 million worth of equipment, led by $133 million worth of electric lighting equipment; and $1 billion worth of chemicals, led by $260 million in fertilizers.

Canada supplies Illinois' increasing demand for energy... Illinois imported nearly $3 billion worth of crude petroleum and $2.5 billion worth of natural gas. The state's energy imports totalled $5.5 billion, an increase of 44% over the previous year.

And forest products. The state bought $1.2 billion worth of forest products, led by $399 million in newsprint and $324 million in softwood lumber. In return, Illinois exported $111 million worth of newspapers and magazines to Canada.

Travel and tourism add millions to the exchange... In 2001, Canadians made over 739,000 visits to Illinois and spent nearly $132 million. Residents of Illinois made almost 694,000 visits to Canada and spent over $231 million.

July 2002

For more information on Canada's trade with Illinois, please contact:
Consulate General of Canada
Two Prudential Plaza
180 N. Stetson Avenue, Suite 2400
Chicago, IL 60601-6714
Tel: (312) 616-1860
Fax: (312) 616-1877
www.chicago.gc.ca

All figures are in U.S. dollars. Merchandise trade and tourism figures are from Statistics Canada, converted at the rate of US$1.00=C$1.5484. Canada's export ranking is from the Massachusetts Institute for Social and Economic Research (MISER). Figures may not add up due to rounding.