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Louisiana 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 and Louisiana traded $4.5 million dollars worth of goods on an average day. In 2001 they traded $1.6 billion, the largest bilateral exchange of goods between the Pelican State and Canada ever, despite the faltering global economy. Canada was a vital market for Louisiana as the state enjoyed a $316 million trade surplus in 2001 - Louisiana sells nearly 50% more goods to Canada than it buys. The mutually beneficial trade helped fuel both economies and provided thousands of jobs.

Chemicals provide the foundation for Louisiana-Canada trade. Louisiana's sale of $366 million worth of chemicals comprised nearly 38% of the state's entire export value to Canada. Louisiana sold $134 million in unshaped plastics, $52 million in organic chemicals, and $46 million in synthetic and reclaimed rubber to its Canadian customers. Louisiana industries, in turn, bought $89 million worth of chemicals from Canada.

Transportation trade drives up revenues. Louisiana's transportation exports to Canada were dominated by trucks. In 2001, the state sold $96 million worth. Canada provided Louisiana with $55 million worth of motor vehicle parts, excluding engines.

Agriculture provides a vital base for both export economies. Accounting for $65 million in sales to Canada, agricultural products were Louisiana's fourth largest export sector. Agricultural exports alone increased nearly 7% from 2000. Canadian markets imported $15 million worth of Louisiana's fish and marine animals. The state's sugar plantations exported $5 million worth of sugar, m0lasses and syrups. Louisiana imported $67 million worth of agricultural products from Canada, including $25 million in wheat and $15 million in whisky.

Louisiana exports minerals and energy. Canada bought $36 million worth of non-metallic minerals and $89 million worth of energy products. The state's energy exports increased 35% from 2000 due primarily to a dramatic increase in fuel oil exports, which accounted for $28 million. Other exports included $33 million worth of coke from petroleum and coal.

Canada supplies the state with machinery. Canadians provided $130 million worth of industrial, agricultural, and mining machinery - vital inputs to help fuel key sectors of Louisiana's economy. The state's largest machinery purchase was $76 million worth of engines and turbines - an increase of over 500% from 2000. Other key imports included $14 million in other general purpose industrial machinery and $9 million in mining machinery.

Tourism adds millions to the exchange. More Canadian tourists visited Louisiana in 2001 than in the previous year, making in excess of 140,000 visits and spending over $70 million. Louisiana residents made over 65,000 visits to Canada and spent $29 million.

July 2002

For more information on Canada's trade with Louisiana, please contact:
Consulate General of Canada
St. Paul Place
750 North St. Paul Street, Suite 1700
Dallas, TX 75201
Tel: (214) 922-9806
Fax: (214) 922-9815
www.dallas.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.