• Canada–U.S. trade supported 7.1 million U.S. jobs
• Total Canada–U.S. merchandise trade: $535 billion
• 63,250 Arkansas jobs are supported by Canada–U.S. trade
• Canada is Arkansas’ largest foreign export market
• Canadians made more than 38,000 visits to Arkansas, spending $8 million
• Arkansas residents made 40,700 visits to Canada, spending $25 million

A Close Relationship

Canada was Arkansas’ leading international export market in 2007, purchasing more goods than the state’s next three foreign destinations — Mexico, China, and France — combined. The trade relationship grew steadily that year, with just over $2 billion in bilateral trade, a 6% increase from the previous year. Arkansas exported $1.1 billion in goods to Canada and imported $928 million.

Forging bonds

Metals remained Arkansas’ most valuable export sector in 2007, with sales totaling $212 million. Structural shapes, steel and sheet piling at $97 million represented almost half of all metal exports. Metals also represented the state’s leading import sector, with purchases from Canada growing to $200 million, an increase of $70 million from 2006. Aluminum, including alloys, constituted over half of all imports and increased by $47 million, reaching $124 million in 2007.

Agricultural exports on the rise

Agricultural products was a profitable sector for Arkansas in 2007. The state supplied its northern neighbor with $152 million worth, which was a 19% increase from the previous year. Moreover, the state economy benefitted from an agricultural trade surplus with Canada, approaching $80 million. Arkansas sent a variety of food products north of the 49^th Parallel, including meats, dairy products, beverages and oils. Canada reciprocated with $74 million in agricultural goods, sending meat, cereals, and vegetables to Arkansas.

Keeping it cool

In 2007, Arkansas-manufactured air-conditioning and refrigeration equipment was the state’s leading equipment commodity to Canada, accounting for $89 million in sales. In all, the state sold Canada $137 million in various types of equipment. The state also relied on Canadian expertise, purchasing $87 million in goods from the equipment sector.

Natural wonders

Canadians made 38,000 visits to Arkansas in 2007. While there, they spent $8 million exploring the state’s six national park sites—thousands of acres of national forest, the Ozark Mountains and the Buffalo River. The state offers unparalleled canoeing and fishing for tourists as well as the ever popular Hot Springs National Park. Residents of Arkansas seeking wide-open expanses and big city entertainment, made 40,700 visits to Canada, and spent $25 million on tourism.

Canada–Arkansas Success Stories

Vancouver’s West Fraser Timber Co. Ltd. has agreed to buy 13 sawmills from International Paper in a $325 million deal that will make it the second-largest lumber producer in North America. The deal marks a significant expansion of West Fraser’s presence in the southern United States. The mills, which are located in North Carolina, South Carolina, Georgia, Florida, Alabama, Arkansas and Texas, employ 2,200 people and produce about 1.8 billion board feet of lumber a year.

Records chronicling the creation of the North American Free Trade Agreement are housed at the William Jefferson Clinton Presidential Library in Little Rock. These documents show the public debate and final negotiations between Canada, the United States and Mexico that added Mexico to the Canada–U.S. Free Trade Agreement and created NAFTA in 1994.

Researchers from Canada’s McGill University are collaborating with University of Arkansas colleagues on research on the nutrition and psychology of chickens. Arkansas is a leading producer of poultry, raising over one billion broiler chickens each year.

June 2008

Tourism

• 38,000 Arkansas visits by Canadians, $8 million spent
• 40,700 Arkansas visits to Canada, $25 million spent

Jobs

• Arkansas jobs supported by Canada–U.S. trade: 63,250

Merchandise Trade

• Exports to Canada: $1.1 billion
• Imports from Canada: $928 million
• Bilateral trade: $2.1 billion
• Largest export market: Canada

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Merchandise trade and tourism figures are from Statistics Canada, converted at the rate of US$1.00=C$1.0749. Merchandise trade is based on total exports and imports for the year 2007. Job numbers are based on 2005 data from a 2006 study 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.