In 2007, Kansas–Canada trade reached $4.4 billion, an increase of almost 5% from the previous year. The state sold $2.1 billion in merchandise to its northern NAFTA partner and bought $2.3 billion worth. In fact, Canada was the state’s most important foreign partner, purchasing more of the state’s exports than its next three international markets — Mexico, Germany and the United Kingdom — combined.
Bilateral trade in transportation goods totaling $1.8 billion, dominated the exchange in 2007. Canada supplied the state with $1.1 billion in transportation goods — $543 million in aircraft parts and engines and $261 million in auto parts. Kansas’ transportation manufacturers assembled the parts and returned finished automobiles ($247 million) and aircraft ($231 million) to Canada. Tariff-free flows of transportation goods and “just in time” inventories benefitted companies on both sides of the border.
Sales of Kansas’ agricultural goods — the state’s second largest export sector — totaled $365 million. Meat exports worth $241 million, represented more than two-thirds of the state’s agricultural sales to Canada. The Sunflower State’s agricultural imports from its northern neighbor totaled $93 million and included $28 million in meat and $11 million in live animals.
The state’s machine manufacturers found an active market in Canada for its industrial and agricultural machines. The state sent $239 million worth north. Front end loaders, a leading export amounted to $44 million. The state also imported $132 million in Canadian machinery, with materials handling machines and equipment amounting to $15 million.
In 2007, Canada was the largest oil supplier to the United States, satisfying the state’s growing need for energy as crude petroleum shipments totaled $87 million.
In 2007, Canadians made 66,600 visits to Kansas and spent $17 million. In return, residents of Kansas made 47,600 visits to Canada, spending $30 million during their stay.
In March 2007, the Raytheon Company sold its wholly-owned subsidiary, Raytheon Aircraft Company, to Goldman Sachs Capital Partners and Onex Partners, a Toronto-based investment firm, for approximately $3.3 billion in cash. The company was renamed Hawker Beechcraft Corporation and the transaction included Raytheon Aircraft facilities and other assets in Wichita and Salina, Kansas; Little Rock, Arkansas; Dallas, Texas; as well as its Fixed Based Operations (FBO) network across the United States, the United Kingdom and Mexico. This is the second major Canadian aerospace investment in Kansas. In 2005, Onex Corporation acquired the Wichita, Kansas-based assets of Boeing’s commercial operations from The Boeing Company and renamed the company Spirit AeroSystems.
Mist Mobility Integrated Systems Technology Inc. (MMIST), an Ottawa-based world leader in the development, production and support of precision aerial delivery systems, will be conducting tests of their SnowGoose Unmanned Aerial Vehicle (UAV) at the Kansas National Guard’s Great Plains Joint Training Center. The SnowGoose is a cargo application UAV designed to deliver unmatched payload, endurance and operational flexibility. It also serves as a multi-mission system for surveillance and communications applications.
June 2008
