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The Factory and the Hub: An Anatomy of Canada's Import Dependence on the US

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  • Julien Martin
  • Florian Mayneris

Abstract

We revisit the reliance of Canada on the US for its imports using new product-level data on the country of origin, the last exporting country, and the transport mode of Canadian imports. We not only show that the US is a key supplier of Canada, but also a key logistical hub: half of the imports from non-US suppliers enter Canada through the US. Therefore, 77 percent of Canadian imports are tied to the US through production or logistical linkages, well above the 55 percent usually reported in the public debate. We show that this reliance on the US is pervasive across most product categories and for Canada's main trade partners. We exploit this new measure of reliance on the US together with input-output tables to quantify the direct and indirect reliance of Canadian industries on the US through their input usage. For the average Canadian industry, the US-related content of its inputs reaches 24 percent. We finally discuss some of the policy implications of these results.

Suggested Citation

  • Julien Martin & Florian Mayneris, 2022. "The Factory and the Hub: An Anatomy of Canada's Import Dependence on the US," Canadian Public Policy, University of Toronto Press, vol. 48(3), pages 360-373, September.
    • Handle: RePEc:cpp:issued:v:48:y:2022:i:3:p:360-373
    DOI: 10.3138/cpp.2021-072
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    More about this item

    Keywords

    import dependence; logistical hub; import diversification; global value chains;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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