Home Trade and Investment State Trade Fact Sheets 2004 Hawaii 2004

Hawaii 2004

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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 $442 billion in 2003, 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. According to a 2003 study commissioned by the Canadian Embassy, based on 2001 data, Canada-U.S. trade supported 5.2 million U.S. jobs, 26,000 in Hawaii alone.

The Aloha State and Canada share a mutually beneficial trading relationship. Canada was Hawaii’s fourth largest trading partner in 2003, exchanging $107 million worth of merchandise. Hawaii exported $26 million in goods to Canada and imported a total of $81 million worth.

Sowing the seeds of trade… Agricultural products to Canada accounted for 70% of the state’s total exports. The Canadian appetite for the state’s agricultural goods increased 9% from the previous year. Exports included $3.5 million in live animals and $1.4 million worth of fish and seafood. In return, Hawaii imported $4.7 million in wheat and $1.5 million worth of live animals.

Canadian forests... Hawaii imported $10.5 million in Canadian forest products—an increase of 113% from the previous year. State purchases included $5.1 million in newsprint and $1.4 million in shingles.

Equipment sales... Hawaii and Canada exchanged $18 million worth of equipment in 2003. Hawaii supplied its northern neighbor with $200,000 in air conditioning and refrigeration equipment and $57,000 in navigation equipment. Canadian shipments to Hawaii included $1.4 million worth of electrical lighting equipment.

Transportation-driven trade... Hawaii exported a total of $3.2 million worth of transportation goods led by $2.5 million in aircraft parts, except engines. It purchased $3.6 million worth of Canadian-made transportation equipment including $1.3 million in trucks, and $817,000 in aircraft parts, excluding engines.

And a variety of other goods... The state purchased $1.1 million in dairy produce, eggs and honey along with $1.1 million in fish. Merchandise traded in the other direction with the state exporting $155,000 worth of plastic film and sheet and $102,000 in sporting and recreational equipment.

Palm trees and pristine beaches beckon... Residents of Canada tanned themselves with over 298,000 visits to the Aloha State, spending $321 million dollars. Hawaiians made 27,000 visits to Canada, spending $18 million dollars.

August 2004

Security Trade & Our Shared Border

In 1996, Canada and the United States implemented a comprehensive Shared Border Accord to deepen cooperation on border management issues. However, the tragic events of September 11th greatly accelerated those effort, and on December 12, 2001, Secretary Ridge and (former) Deputy Prime Minister John Manley launched the Smart Border Declaration. The declaration outlined a 30-Point Action Plan based on our shared objective in identifying and addressing security risks while efficiently expediting the legitimate flow of people and goods across our border. The 30-point Smart Border Action Plan takes aggressive steps toward building a smart border for the 21st century —— a border open for business but closed to terrorists.

The Smart Border Declaration also addresses border delays that followed the 9/11 attacks and commits both countries to relieving congestion at key ports of entry by investing reciprocally in border infrastructure and technological solutions to speed movement across the border. The Declaration states both governments intent to identify and minimize threats to critical infrastructure such as airports, ports, bridges and tunnels.

Both governments also recognize that public security and economic security are mutually reinforcing. We have agreed to work together to identify security threats before they arrive in North America through collaborative approaches such as reviewing crew and passenger manifests, managing refugees and visa policy coordination. We also have established a secure system to allow low risk frequent travelers between our two countries to move efficiently across the border.

One truck crosses our shared border every 2.5 seconds —— representing 45,000 trucks per day, each and every day. The Smart Border Plan establishes compatible cargo entry processes at the border and secure procedures to clear goods away from the border, including at rail yards and marine ports. For instance, Canadian and US Customs inspectors work side by side at seven of our largest seaports —— jointly targeting marine in-transit containers.

Through coordinated efforts, Canada and the United States are addressing issues such as terrorism and cross-border crime. The Smart Border Declaration makes two commitments specific to fostering information sharing: we will put the necessary tools and legislative framework in place to ensure that information and intelligence is shared in a timely and coherent way and we will strengthen coordination between our enforcement agencies for addressing common threats. Integrated Border and Marine Enforcement Teams (IBET/IMET) at points between ports of entry enhance such communication flow and allows us to target priority areas.

Read more about the Smart Border Action Plan at www.canadianembassy.org/border/

For more information on Canada's trade with Hawaii, please contact:
Consulate General of Canada
550 South Hope Street, 9th Floor
Los Angeles, CA 90071-2627
Tel: (213) 346-2700
Fax: (213) 346-2767
www.losangeles.gc.ca

All figures are in US dollars. Merchandise trade and tourism figures are from Statistics Canada, converted at the rate of US$1.00=C$1.4015. 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 2003 state trade figures
• Read the 2002 state trade figures