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Strategic Insights Business Recovery in the USA and Canada

If media reports are to be believed, Canadians look to be a particularly unhappy lot right now. The recent bout of inflation and interest rate rises appear to have precipitated a specific phase of economic suffering that has spilled over into personal lives, and that misery appears to be uniform across demographic and socioeconomic categories. According to one survey, financial troubles, inflation, and high interest rates are having an impact on Canadians' mental health, driving concern about housing and food.  Millennials, particularly those who own a home, appear to be the most vulnerable to economic downturns as interest rates rise on tight debt burdens and economic damage wreaks havoc on the economy and expectations. Burdened by debt and rising housing expenses, three-in-ten Canadians are "struggling" to make ends meet, with mortgage holders reporting trouble meeting housing bills up 11% from last June. If you have a place to live, you struggle to pay your bills, and

How USA and Canada Are Leading Business Recovery Efforts

Canada and the United States have a special relationship. Shared location, comparable ideals, same interests, deep personal relationships, and significant, multifaceted economic links form the foundation of the Canada-United States cooperation. Our two countries have a strong and long-standing defense and national security alliance, which provides both countries with more security than they could achieve independently. Trade and investment between Canada and the United States supports millions of jobs and contributes to the safe and efficient flow of goods and people over the border, which is critical to both nations' economic competitiveness and success.

The Canada-United States-Mexico Agreement (CUSMA)Footnote1 strengthens Canada's strong commercial links with the United States and Mexico while providing major economic benefits to all three countries.

Canada has an embassy in Washington, D.C., consulates general in Atlanta, Boston, Chicago, Dallas, Denver, Detroit, Los Angeles, Miami, Minneapolis, New York, San Francisco, and Seattle, as well as three trade offices and fourteen honorary consuls. The United States has an embassy in Ottawa and consulates general throughout Canada. Roadmap, Joint Statements, and Other Leader-Level Commitments In March 2023, Prime Minister Trudeau welcomed US President Joe Biden to Canada for his first in-person visit since his inauguration. The two leaders issued a Joint Statement that expanded on the commitments made in the 2021 Roadmap for a Renewed Canada-US Partnership to accelerate the clean energy transition, strengthen North American critical minerals and semiconductor supply chains, protect shared waters and the Arctic, advance diversity and inclusion, and strengthen global alliances against threats to the international order. Overall, there are over a hundred Leader-level commitments that outline a path forward for achieving the new green economy, including the work of a new Energy Transformation Task Force (led by the Deputy Prime Minister) and strengthening Canada-US collaboration across a range of mutual interests and shared domestic, bilateral, and multilateral priorities. Border cooperation Canada and the United States have a land border of about 9,000 kilometers, which is the world's longest international border. The boundary is shared by 13 states in the United States, seven Canadian provinces, and one territory.

The majority of Canadians two out of three live within 100 km of the border. Our two countries work together to keep our common border safe and secure.

Officials in Canada and the United States work closely together to ensure the safe and efficient movement of goods and people over the border, which is critical to both nations' economic competitiveness and prosperity. Every day, an estimated 400,000 individuals pass the Canada-United States border, while approximately 800,000 Canadian citizens live in the United States. Many Indigenous peoples in Canada and Native American tribes in the United States have communities and traditions that cross borders. Security and defense cooperation Canada and the United States are important allies and defense partners, and we work closely together to address international crises and protect common values abroad. Our shared goals of strengthening continental defence and ensuring global peace and security have resulted in extensive cooperation between our respective defense and national security agencies. Our bilateral defense and national security relationship encompasses all aspects of cooperation, including shared continental defense, commitments to collective objectives through the North American Aerospace Defence Command (NORAD), the North Atlantic Treaty Organization (NATO), and the Five Eyes, intelligence sharing, defense materiel cooperation, and strong relationships between law enforcement agencies. Canada and the United States recently agreed to speed NORAD modernization. In addition to previously announced investments in NORAD and the Canadian Armed Forces that support continental defence more broadly (including F-35 fighter jets and related infrastructure)

Canada is working with the United States to reduce violent extremism, child sex exploitation, cross-border smuggling, and firearms violence on both sides of the border, as well as to strengthen cybersecurity cooperation to improve the resilience and protection of our critical infrastructure.

Canada and the United States work closely together on global security concerns, particularly in Europe through NATO and improving the capabilities of Ukrainian security services, as well as in the Middle East through the Global Coalition against Daesh. Canada and the United States also maintain a marine presence and enforce sanctions in the Indo-Pacific region, as well as carry out illicit trafficking activities in the Caribbean Sea and eastern Pacific Ocean. Canada and the United States have the world's most comprehensive trading relationship, supporting millions of jobs in both countries. We are each other's top trading partners, with approximately $3.6 billion in goods and services crossing the border every day in 2023. Many of these items require co-investment and co-development, making our networks extremely linked. Canada and the United States also have a strong investment relationship. The United States is the single largest investor in Canada, and Canada was the largest source of foreign direct investment (FDI) in the United States as of the end of 2022. In addition, Canada is the single greatest foreign energy supplier to the US. For nearly four decades, commerce between Canada and the United States has been governed by a series of free trade agreements, the most recent of which, the Canada-United States-Mexico Agreement (CUSMA), went into effect in July 2020. CUSMA underpins our strong, balanced commercial relationship with the United States and Mexico, which is based on resilient and effective supply chains in all essential sectors of the economy.

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