• Canada–U.S. trade supported 7.1 million U.S. jobs
• Total Canada–U.S. merchandise trade: $535 billion
• 221,500 Michigan jobs are supported by Canada–U.S. trade
• Canada is Michigan’s largest foreign export market
• Canadians made more than 1,410,900 visits to Michigan, spending $284 million
• Michigan residents made 1,346,900 visits to Canada, spending $467 million

A Close Relationship

In 2007, Canada was Michigan’s most important trading partner, purchasing 58% of the state’s foreign–bound goods. Michigan sent almost $25 billion in merchandise to its northern NAFTA partner and imported $53 billion worth. Overall, two-way exchanges continued their upward ascent in 2007, reaching $77.9 billion, a 9% increase from the previous year.

Transportation drives trade

Bilateral trade in transportation products — Michigan’s principal import and export sector — exemplifies the integrated Canada–U.S. marketplace as companies contribute to various stages of motor vehicle production with many parts crossing the border multiple times.

Transportation products dominated the exchange in 2007. The Great Lakes State sent $16.3 billion in transportation goods northward, which accounted for 66% of the state’s total sales to Canada. Michigan’s leading exports were motor vehicle parts, not including engines ($6.5 billion), automobiles ($4.4 billion), and trucks ($3.1 billion).

Nearly three–quarters of Michigan’s imports from Canada originated from the transportation sector. Valued at $39 billion, transportation imports included automobiles ($25.3 billion), trucks ($6.3 billion), and motor vehicle parts, except engines ($4.8 billion).

Feeding the economy

In 2007, bilateral trade in agricultural products exceeded $1 billion. Michigan’s leading purchases from Canada included vegetables ($203 million) and meat ($84 million). In return, the state sold meat ($57 million), shelled corn ($50 million) and soybeans ($30 million) to its northern partner.

A reliable source of energy

Michigan took advantage of nearby Canadian oil, buying $1.3 billion in crude petroleum. Canada also supplied Michigan with natural gas ($1.5 billion) and petroleum and coal products ($859 million). In exchange, Michigan sent energy shipments totaling $1.6 billion to Canada.

Friends, neighbors, allies… tourists

Canada–Michigan Success Stories

Building on its diversification strategy, Auburn Hills–based Champion Enterprises acquired Canadian builder SRI Homes Inc for $114 million in December 2007. Champion builds and sells modular and manufactured homes. SRI Homes operates three manufacturing facilities located in British Columbia, Alberta and Saskatchewan. The acquisition will boost Champion’s share of the Canadian factory-built housing market to 39 percent.

In 2007, Azure Dynamics Corporation of Canada, a world leader in the development and production of hybrid and electric components and powertrain systems for commercial vehicles, announced the relocation of its headquarters in Oak Park, MI. The company announced that the move was necessary to continue to advance opportunities with automotive industry leaders such as the Ford Motor Company. The company received a state tax credit valued at more than $1.7 million over seven years. It will keep the bulk of its hybrid and hybrid-electric systems engineering and technology development team in its Vancouver, BC facility.

In March 2008, the state of Michigan passed legislation creating optional enhanced driver’s licenses that meet the requirements of the Western Hemisphere Travel Initiative. The licenses can be used as identification to cross the land borders between Canada and the United States. Michigan residents who are also U.S. citizens are eligible to receive the enhanced driver’s license. Those who choose not to get an enhanced license would receive a standard license.

June 2008

Tourism

• 1,410,900 Michigan visits by Canadians, $284 million spent
• 1,349,900 Michigan visits to Canada, $467 million spent

Jobs

• Michigan jobs supported by Canada–U.S. trade: 221,500

Merchandise Trade

• Exports to Canada: $24.9 billion
• Imports from Canada: $53.0 billion
• Bilateral trade: $77.9 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.