• Canada–U.S. trade supported 7.1 million U.S. jobs
• Total Canada–U.S. merchandise trade: $535 billion
• 304,500 Illinois jobs are supported by Canada–U.S. trade
• Canada is Illinois’ largest foreign export market
• Canadians made more than 409,000 visits to Illinois, spending $196 million
• Illinois residents made 477,400 visits to Canada, spending $282 million

A Close Relationship

2007 was another profitable year for the Illinois–Canada relationship as bilateral trade flows climbed to $41.2 billion, an increase of 9% from the previous year. Illinois exports, led by transportation and machinery sales, totaled $13 billion. By comparison, the Prairie State imported $28.2 billion worth; over half of which were energy products. Moreover, Canada was the state’s most important trading partner, purchasing more than 27% of Illinois’ foreign-bound merchandise.

An energy partnership

In 2007, Illinois looked to its northern NAFTA partner to meet its energy consumption needs. The state bought $16 billion in energy supplies, a 21% increase from the previous year. The state imported $11.9 billion in crude petroleum and $4 billion in natural gas. In fact, the volume of Canadian energy flowing southward increased to $44 million on a typical day.

The importance of transportation trade

Illinois and Canada enjoyed a mutually beneficial relationship in the exchange of transportation goods, which reached $5.5 billion in 2007. The state supplied its northern neighbor with $943 million in finished automobiles and bought $717 million in Canadian–made trucks. The partners bought and sold almost $1.4 billion in motor vehicle parts and engines. Other transportation goods were also traded — railway rolling stock, aircraft and parts, marine engines and more. The trade in components and finished transportation goods points to the high degree of integration of manufacturers on both sides of the border.

Building a strong economy

A leader in agricultural, industrial and construction machinery, the Illinois economy benefitted from the state’s central location and its many Fortune 500 manufacturers. The state sold heavy machinery to Canada, valued at $2.5 billion. Its leading machine commodities included track laying tractors and used tractors ($276 million), front end loaders ($239 million) and construction and maintenance machinery ($234 million).

Visiting the Land of Lincoln

Canada–Illinois Success Stories

Canadian National is an excellent example of the Canadian footprint in the Midwest, creating value-added jobs and facilitating the growth of commerce. In the State of Illinois alone, CN has 22 facilities, employing over 700 workers. Their proposed $300 million acquisition of Elgin, Joliet & Eastern Railway (EJ&E), designed to “fill the last gap” in its trans-Chicago network, will further solidify CN’s role as a major mover of inbound and outbound merchandise into and from Chicago and other parts of the Midwest, creating jobs and wealth in the region. CN is also committed to investing an another $100 million in additional infrastructure in Chicago and nearby areas.

U.S. energy company ConocoPhillips and Canada’s EnCana have a joint venture under which EnCana acquired a 50% stake in two of Conoco’s refineries, including the one in Roxana/Wood River, IL, creating hundreds of high-value jobs in the State. Under the arrangement, ConocoPhillips acquired a 50% stake in an oil sands project in Alberta. Under their joint venture, the Illinois refinery is being modernized and re-equipped to be able to refine more Canadian crude oil feedstock. This venture is an excellent example of the Canada–U.S. energy partnership in practice, and one that directly benefits employment and economic growth in the Midwest.

Illinois-based Caterpillar is a prime example of how Canada’s booming oil sector has had a positive economic impact in the Midwest. The company manufactures machines and construction equipment, including giant trucks that are used extensively in development projects in Alberta’s oil sands — one of Caterpillar’s primary markets. The company is headquartered in Peoria and has three plants in the state — in Peoria, Decatur and Aurora.

June 2008

Tourism

• 409,000 Illinois visits by Canadians, $196 million spent
• 477,400 Illinois visits to Canada, $282 million spent

Jobs

• Illinois jobs supported by Canada–U.S. trade: 304,500

Merchandise Trade

• Exports to Canada: $13 billion
• Imports from Canada: $28.2 billion
• Bilateral trade: $41.2 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.