This is something that has been bugging me for months now. All the coverage online, all the comments, and even the media reports (both American and Canadian) seem to be of the opinion that Canada has serious leverage against the us, and if they just hold out Trump will give them everything they want, but from my reading of the data that just seems wrong.
Here's what I found:
– Canada's trade to GDP ratio is 63%, America's is 25%
– 77% of canadas trade is with the us, while only 14% of americas trade is with canada.
– Canada's economy is 1/16th the size of the american economy and their population is around 1/10th.
– Canada has no real alternatives to trading with the us, everyone else is a literal ocean away and Canada lacks internal infrastructure to get goods to market besides the us.
To me this just seems like despite all the nationalist fervor and shots going around Canada really doesnt have that many cards to play, atleast not in comparison to the us. Am I wrong? What am I not seeing that the media and other commentors are?
How much leverage does Canada have in trade talks with the US?
byu/colepercy120 inAskEconomics
Posted by colepercy120