Canada's Economy

A trading nation

Canada has always been a trading nation, and trade is essential to its prosperity. The United States is Canada's largest trading partner, and the two countries share one of the largest trading relationships in the world. Canada also trades with many other countries around the globe.

The three types of industry

The Canadian economy includes three main types of industry:

• Service industries: jobs in areas such as transportation, education, health care, construction, banking, communications, retail, tourism and government. Most Canadians work in service industries.
• Manufacturing industries: making products to sell in Canada and around the world, such as paper, high-technology equipment, automobiles, food, clothing and many other goods.
• Natural resources industries: forestry, fishing, agriculture, mining, and energy, which are important to Canada's history and to many regions today.

Free trade

Canada is a strong supporter of free trade. The North American Free Trade Agreement (NAFTA), which included Canada, the United States and Mexico, helped expand trade and create jobs across North America. Canada has also entered into trade agreements with other countries and regions to open markets for Canadian goods and services.

Industries across the regions

Different parts of Canada are known for different industries and resources, reflecting the country's geography:

• The Atlantic Provinces have important fisheries, along with oil and gas and forestry.
• Central Canada (Ontario and Quebec) is the country's industrial and manufacturing heartland, including automobiles and aerospace, and is home to most of Canada's population.
• The Prairie Provinces are rich in farmland, producing grain and cattle, and in energy resources such as oil and gas.
• British Columbia, on the West Coast, is known for forestry, mining, fishing, fruit growing and trade through Pacific ports.
• The Northern Territories, sometimes called the Land of the Midnight Sun, are rich in minerals, oil and gas.