Is Canada’s Economic Dependency on the US Too Great to Boycott?

Recent discussions have suggested that Canada might consider boycotting the United States to assert itself on the international stage. However, such an idea is both illogical and unachievable in the short term. This article explores the reasons why a boycott of the United States is neither feasible nor desired by Canada, given the extensive economic ties that have been built over the years.

Why Boycotting the US Is Unlikely

No. Canada does not want to, nor could it, boycott the United States. Our economic relationship with the U.S. is too strong for that. We value the robust sales channel relationships we have built, and cutting off these ties would have devastating effects on our GDP and our standing in the global economy.

Our status as a member of the G-20 and our GDP position at 10 are critical for our economic well-being. Losing these designations and the associated benefits would be a formidable ordeal and could lead to a major economic crisis.

Therefore, it is patently clear that Canada would not consider a boycott of the United States. The idea is more theoretical than practical.

Challenges in Fully Replacing US Sales Channels

The magnitude of cross border trade between Canada and the United States is staggering and cannot be immediately replaced. Replacing these sales channels with those in other countries would require monumental logistical and economic effort. This is due to the extensive infrastructure, including roads, rail networks, and Great Lakes shipping ports, that are integrated with the U.S.

Even our seaports would struggle to handle the volumes that currently move freely across the border. The relatively few Canadian seaports would be overwhelmed, and this would lead to severe disruptions in our supply chains.

Quantifying the Extent of Cross-Border Trade

The Canada-U.S. border: by the numbers

Given the enormous volume of goods and services that cross the border each day, it is impossible to overstate the importance of this relationship to both countries. Here are some key figures that highlight the scale of this trade:

$640 billion: The value of trade between Canada and the United States in 2021. 1.2 million jobs: Jobs directly supported by the Canada-U.S. trade relationship. 38,000 trucks a day: The number of trucks that cross the border between the two countries. 73,000 railcars a day: Railcars that cross the border, carrying goods to and from North America. 8,200 flights a year: The number of commercial flights that connect the two countries, ferrying goods, people, and services across the border.

These figures illustrate the depth and breadth of the economic ties between Canada and the United States. The seamless integration of our supply chains, from transportation to logistics, makes it nearly impossible to replicate this level of trade with other nations in the near future.

Conclusion

Given the extensive economic interdependence, it is clear that a boycott of the United States is neither feasible nor desirable for Canada. The benefits of our sales channel relationships with the U.S. far outweigh the perceived risks. Maintaining this relationship is vital for the continued prosperity and global standing of Canada.

Keywords

Canada-US Trade, Economic Interdependence, Border Trade, Cross-Border Relations