Canada

Chart showing US commodity exports to Canada

Supply/Demand Basics

  • #6 export market destination for U.S. corn, importing nearly 1.77 MMT in MY 2020/2021.
  • #6 export destination market for U.S. DDGS, importing 532 TMT in MY 2020/2021.
  • #1 export destination import market for U.S. ethanol, importing 349 million gallons in MY 2020/2021. 

Country Overview

Chart showing information about Canada's population

  • Canada resembles the U.S. in its market-oriented economic system, pattern of production and high living standards. 
  • The livestock sector in Canada is large and well-developed. Around 2.3 MMT of pork were produced in Canada in 2020 and approximately 1.54 MMT of pork were exported that year.
  • In 2020, Canada produced around 1.28 MMT of beef and exported  527 TMT. The U.S. accounted for the largest export market for beef, with an export value of approximately 2.33 billion CAD. 

Trade and Market Share Overview

  • In 2020, Canada was the second largest export market for U.S. agricultural exports, totaling over US $22 billion, accounting for nearly 15% of total U.S. agricultural exports.
  • Canada is a top market for U.S. ethanol, corn and DDGS. It is the #4 export market for U.S. feed grains in all forms at 7.75 MMT with a value of $3.6 billion.
  • In 2020, the United States imported US $25.3 billion worth of agricultural products from Canada.

Graph showing US exports to Canada in dollars

Policy Overview

  • The first dispute settlement panel under the USMCA was brought against Canada, which was found guilty of violating the agreement by reserving most of its dairy tariff-rate quota for the exclusive use of Canadian processors. This decision sets the stage for regulation of the newly-revised trade agreement.
  • In December 2021, Environment and Climate Change Canada published the final draft regulation for the Clean Fuel Standard (CFS) to reduce its GHG emissions through increased use of lower carbon fuels and technologies. The regulation would go into effect in spring 2022.  
  • In December 2021, Quebec finalized its legislation to require 15% blending by 2030, increasing demand in Canada’s largest province.