The US's Biggest Trade Partner Canada

 The United States normally exports more agricultural goods by value than it imports, but imports have grown faster than exports over the last decade, resulting in a negative trade balance in some years. From fiscal years 2013 to 2023, U.S. agricultural exports increased at a compound annual growth rate of 2.1%. During the same period, agricultural imports in the United States climbed by 5.8%. The strong US currency and consumer preferences for year-round produce selections have fueled the rapid surge in US import demand. The ensuing agricultural trade balance has been negative in three of the last ten fiscal years.

Without accounting for inflation, the value of US agricultural exports peaked in fiscal year 2022 before falling in 2023. Total exports were valued at $178.7 billion in 2023, down $17 billion from 2022. Four sectors accounted for over 90% of all agricultural exports. Grains and feeds are divided into four categories: oilseeds and goods, animals (including livestock and poultry), meats and products, and horticultural products. Although a variety of commodities contributed to the fall in export value in 2023, cereals and animal exports accounted for the most of it, with decreasing export values of corn, wheat, sorghum, and beef. One of the primary drivers of the overall decline in export values was a drop in global commodity prices since their peak in 2022.

Between fiscal years 2013 and 2023, the value of agricultural imports in the United States increased at a compound annual growth rate of 5.8%

Horticultural products, which include fruits, vegetables, spirits, wine, essential oils, tree nuts, and nursery stock, have typically accounted for at least half of the value of agricultural imports into the United States. Consumers' desire for a year-round supply, shifting consumer preferences, and foreign production that is becoming more competitive with domestically grown produce have all contributed to an increase in demand for horticultural products. Furthermore, tariff- and quota-free imports through the North American Free Trade Agreement (NAFTA) and, later, the United States-Mexico-Canada Agreement (USMCA) increased consumer spending. However, from 2022 to 2023, the import value of horticultural items decreased slightly due to declining global prices and lower imports of alcoholic beverages. However, increased imports of vegetable oils and grain products (in the oilseeds and grains category) more than offset the reduction, resulting in a 1% overall import increase in 2023.

In fiscal year 2023, the top five markets for US agricultural exports accounted for 64% of the total value. China received the most exports, totaling $33.7 billion, followed by Mexico ($28.2 billion) and Canada ($27.9 billion). The European Union underperformed these figures by $12.3 billion, narrowly surpassing Japan at $12.2 billion. Since 2001, the nominal value of agricultural exports to these five US trading partners has climbed annually at a compounded pace of 2.7%. From 2022 to 2023, the value of US agricultural exports to these markets fell, with the exception of Mexico. Canada and Mexico are the United States' first and third major agricultural product suppliers, averaging $30.9 billion and $25.5 billion in 2017-21, respectively. Mexico supplied the United States with 31% of its imported horticulture products, which included fruits, vegetables, and alcoholic drinks. Canada also produces horticulture items, wheat, and meat. The European Union is the United States' second largest import source, accounting for $28.0 billion in agricultural imports in 2017-21, with horticulture items such as wine, spirits, and essential oils accounting for more than 60% of the total value. From 2017 to 2021, South America (headed by Brazil, Chile, and Colombia) imported an average of $15.6 billion from the United States, primarily horticulture, sugar, and tropical items for which the region has a comparative or seasonal advantage.

From 2017 to 2021, East Asia and North America together accounted for 60% of US agricultural exports

East Asia (headed by China, Japan, and South Korea) had the biggest market share, accounting for 31 percent. The top three commodity groupings exported to East Asia are oilseeds, cereals, and meats. Over the five years from 2017 to 2021, U.S. exports to Canada and Mexico increased to account for 28 percent of global exports. Southeast Asia (headed by the Philippines, Vietnam, and Indonesia) is the third most popular regional destination, closely followed by the European Union.

The proportion of US agricultural and food production sold outside the country reflects the sector's reliance on overseas markets. Fruits and tree nuts, oilseeds, and food grains such as rice and wheat are among the commodities with the biggest export shares (40 percent or more of total market value). The United States exports a higher proportion of non-manufactured goods than manufactured goods. Non-manufactured items include cereal grains such as rice and wheat, oilseeds, and tree nuts like almonds. The United States exports a smaller percentage of manufactured goods, such as sweeteners, bakery items, and dairy products. Since 2008, the overall export percentage of US agricultural production has been relatively stable at around 20%.

Higher-value agricultural product groups account for a larger share of US agricultural consumption supplied from imports. This increased share is attributable to a variety of variables, including manufacturing competitiveness, seasonal availability, customer preferences, and so on. The United States relies on imports for sweeteners, processed sugar, and confections. Fruits, nuts, and vegetables are also widely imported. The United States relies less on imports of raw commodities such feed grains, cattle, and oilseeds. Between 2011 and 2021, imports accounted for 15% of total food and beverage consumption, significantly increasing over time.

Alberta has strong trading and social relations with numerous Indo-Pacific countries

which collectively account for the province's second largest and most diverse export market. The Indo-Pacific area comprises significant markets like China, India, Japan, Korea, and the Association of Southeast Asian Nations. Alberta is seen as an important province in Canada's economic relationship with countries in the Middle East and Africa, particularly in the petroleum and agriculture sectors. Alberta has worked on governance projects in a number of countries, including Tanzania and Malawi. Countries in these regions send a substantial number of immigrants to Alberta and have strong economic and cultural ties with the province.Alberta has a deep European background, with the majority of its residents descended from European countries. Alberta has strong long-standing economic and cultural ties with Europe, which is Alberta's second largest source of foreign direct investment and third most important regional export market.Alberta has the biggest Ukrainian-Canadian community in western Canada, with around 345,000 Albertans of Ukrainian heritage.

The Advisory Council on Alberta-Ukraine Relations (ACAUR) offers strategic advice and suggestions on how to strengthen relationships and expand opportunities for engagement with Ukraine and Alberta's Ukrainian population by: functioning as a two-way information resource for Alberta's Ukrainian community and the Alberta government about Alberta-Ukraine events Identifying and promoting opportunities to increase collaboration between the governments of Ukraine and Alberta assisting neighboring provinces, territories, and the federal government better understand crucial issues concerning Ukraine