In 2019, Canada continued to be the top destination for U.S. agricultural exports, which amounted to $20.8 billion, down slightly from the 2018 value. Canada represented 15 percent of total U.S. agricultural exports. The United States was Canada’s largest trading partner for agricultural goods, capturing 58 percent of Canada’s import market, followed by the EU-28, with a 12 percent share. Although Canada had imposed 10 percent retaliatory tariffs until May 2019 on a number of agricultural products and the U.S. dollar remained strong, U.S. agricultural exports to Canada were resilient. Sales to Canada were driven by robust business relationships between Canadian buyers and their commitment to their U.S. suppliers. The largest export growth was seen in dog & cat food and fresh vegetables, up $101 million and $97 million, respectively, and increases in exports of prepared food, live animals, and pulses were up $89 million, $50 million, and $43 million, respectively. Exports of beef & beef products were down by more than $91 million. Exports of soybeans, poultry & meat (excluding eggs), and fresh fruit were down $88 million, $52 million, and $51 million, respectively. Despite these decreases, Canada in 2019 was the top market for U.S. prepared foods, fresh fruit, snack foods, processed vegetables, fresh vegetables, feeds & fodders, wine & beer, non-alcoholic beverages (not including juices), condiments & sauces, chocolate and cocoa products, dog & cat food, processed fruits, vegetable oils (excluding soybeans), live animals, fruits & vegetable juices, breakfast cereals, and other oilseeds including rapeseed and flaxseed.
Under the North American Free Trade Agreement (NAFTA), Canada and the United States have eliminated all tariffs and quantitative restrictions on agricultural goods and have strengthened scientific ties to eradicate diseases and pests, conduct research and enhance conservation.
The new U.S.-Mexico-Canada Agreement (USMCA) will further strengthen the United States’ highly productive and integrated agricultural relationship with Canada and create new export opportunities for U.S. agriculture.