Canada sensitivity to U.S economy?
What can Canada do to become less reliant to the U.S economy in which we are sensitive to
U.S economy bad= Canadian economy bad
- simplicitusLv 79 years agoFavorite Answer
About 75% of Canadian exports go to the U.S.
Find other buyers - even if that means producing different goods that other countries would want to buy.
Canada is not as bad as it used to be, but it is still exporting too much in the way of natural resources (primary sector) and not enough manufactured goods (58% of exports are primary sector: agricultural, energy, forestry and mining)
Back in 1980 Jane Jacobs, in her "The Question of Separatism"
noted that Norway and Canada had the same sort of natural resources, and that Norway had a much smaller population, but while Canada was exporting the natural resources directly, Norway was exporting value-added products.
2. Reduce trade barriers within Canada.
I was shocked to discover that there are trade barriers between Canadian provinces:
Internal trade barriers combined with a lack of barriers on trade to the U.S. means that manufacturers are going to find it cheaper to sell to the U.S. and hence are going to be more sensitive to the U.S. economy.
3. Take advantage of population diversity.
As a country, Canada has the most diverse population in the world, thanks to its policy of welcoming immigrants. Yet while the immigrants do make a net contribution to the Canadian economy, one doesn't seem to be seeing the sort of innovations that would come from taking full advantage of that diversity.