Published on 04/7/2006

Canada is the United States most important trading partner, with over $450 billion worth of goods, services, investments, and financial transfers exchanged between the two countries in 2004. Canada and the U.S. also enjoy an interdependent energy relationship, trading oil, natural gas, coal, and electricity. Canada has experienced sustained economic growth during the past several years; its real gross domestic product (GDP) grew at a rate of 2.9 percent in 2005, the same as in 2004.

Canada is a net exporter of oil, natural gas, coal, and electricity.

Canada is the United States’ most important trading partner, with over $450 billion worth of goods, services, investments, and financial transfers exchanged between the two countries in 2004. Canada and the U.S. also enjoy an interdependent energy relationship, trading oil, natural gas, coal, and electricity.

Canada has experienced sustained economic growth during the past several years; its real gross domestic product (GDP) grew at a rate of 2.9 percent in 2005, the same as in 2004. Continuing economic recovery in the United States and higher prices for Canada’s natural resource exports have driven Canada’s economic growth in recent years.

Canada has considerable natural resources and is therefore one of the world’s largest producers of energy. In 2003, Canada produced 18.4 quadrillion British Thermal Units (Btu) of total energy, the fifth-largest amount in the world. Of this total, Canada consumed 13.5 quadrillion Btu in 2003. Since 1980, Canada’s total energy production has increased by 80 percent, while its total energy consumption has increased only by 40 percent.

Almost all of Canada’s energy exports go to the United States, making ity the largest foreign source U.S. energy imports.

Source: Energy Information Administration