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Connecticut_2003

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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. Evidence of the benefits of free trade are clear as two-way trade in goods and services between Canada and the United States totaled $440 billion in 2002, the largest bilateral exchange in the world. Furthering the benefits of free trade, the 1994 North American Free Trade Agreement (NAFTA) opened the Mexican market to Canada and the United States.

Canada is Connecticut's number one customer. The bilateral trade was essential to both economies, with Connecticut importing $1.8 billion worth of goods and Canada accounting for 18% of Connecticut's total exports. This exchange provided both parties with vital income and jobs.

Connecticut leads the way in transportation equipment. Transportation exports totaled $216 million in 2002, including $124 million worth of aircraft engines and engine parts and $76 million in motor vehicle and engine parts.

Trade between Connecticut and Canada creates a chemical reaction. Connecticut exported $203 million in chemicals in 2002, which accounted for 16% of the state's exports. Chemical sales included $57 million worth of unshaped plastics, $45 million in organic chemicals, and $15 million worth of inorganic chemicals.

Machinery and metals account for a quarter of the state's exports. Machinery sales to Canada included $25 million worth of bearings and $12 million worth in metalworking machine tools. In 2002, Connecticut sold $25 million in copper and alloys and $23 million in valves to Canadian customers.

Connecticut supplies Canadian homes... Accounting for over 11% of Connecticut's exports in 2002 were households goods. Exports worth $150 million were made up of $14 million worth of furniture and fixtures and $22 million worth of games, toys, and children's vehicles.

Canada's forests help supply the people and industries of Connecticut. In 2002, the state imported $408 million worth of forest products, accounting for 23% of its imports. Newsprint worth $179 million was the second largest Canadian export to the state. Forest product sales also included $57 million in softwood lumber. Both are essential products that helped keep costs low in other sectors of Connecticut's economy.

Connecticut imported $118 million worth of chemicals, including $50 million worth of synthetic rubber and plastics and $28 million in organic chemicals.

Canada supplied the state with vehicles. Connecticut imported $231 million worth of transportation equipment in 2002, the largest portion of which was $143 million worth of aircraft sales.

Tourism adds millions to the exchange. Residents of Connecticut made over 306,000 visits to Canada and spent in excess of $109 million. Canadians made over 124,000 visits to Connecticut in 2002, spending over $25 million.

June 2003

Trade, Security & the Border

In 1996, Canada and the United States implemented a comprehensive Shared Border Accord to deepen cooperation on border management issues. Since the September 11th attacks on the United States, Canada and the United States have accelerated those efforts to protect the security and enhance the prosperity of their citizens. The two governments continue to expand threat information sharing, upgrade their crisis response abilities and ensure that the Canada-U.S. border remains secure with an efficient flow of trade. The 30-point Smart Border Action Plan, enacted in December 2001, takes aggressive steps toward building a smart border for the 21st century - a border open for business but closed to terrorists.

For more information on Canada's trade with Connecticut, please contact:
Consulate General of Canada
1251 Avenue of the Americas
New York, NY 10020-1175
Tel: (212) 596-1628
Fax: (212) 596-1790
www.newyork.gc.ca

All figures are for 2002 and are in US dollars. Merchandise trade and tourism figures are from Statistics Canada, converted at the rate of US$1.00=C$1.5704. Canada's export ranking is from the Massachusetts Institute for Social and Economic Research (MISER). Figures may not add up due to rounding.

• Read the 2002 state trade figures