Canada has proven to be an appealing and profitable market for U.S. companies for many years. USDA’s Foreign Agricultural Service (FAS) Office of Agricultural Affairs (OAA) in Ottawa, hereinafter referred to as “Post” reports that trade with Canada is facilitated by unparalleled regulatory cooperation, sophisticated transportation logistics and financial markets, geographic proximity, similar consumer preferences, and relatively affluent consumers. Canada agricultural trade is substantially influenced by intra-industry trade, particularly with value-added products. But as similar as the U.S. and Canada are, there are differences that exporters must appreciate in order to succeed. As in any foreign market, understanding the nuances of the marketplace is critical to successfully launching a product in Canada.
The North American Free Trade Agreement, (NAFTA), was updated to the United States-Mexico-Canada agreement (USMCA) in September 2018 and should reduce uncertainty over trade with the US. The agreement entered into force on July 1st, 2020. Canada’s recent trade agreement with the European Union (EU), the Comprehensive Economic and Trade Agreement (CETA), is an attempt to reorient more of its trade away from the U.S. and towards Europe. It eliminated 99% of tariffs on both sides and has boosted bilateral trade by about 20%.
In March 2018, Canada was one of the 11 countries to sign the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which replaced the abandoned Trans-Pacific Partnership.
U.S. Food & Agricultural Product Imports to Canada, By the Numbers
Euromonitor projects the retail sales in the packaged food market to reach over US$52.1 billion by 2024.
Top U.S. products in demand:
Participants in 2019 Focused Trade Missions Reported:
With the Branded Program, you may be eligible for 50% reimbursement on:
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