<P> Historically , the issue of Canada 's largest trade partners , and dependence on particular markets , has been a major political issue . At the time of Confederation in 1867 , the United Kingdom was by far Canada 's largest trading partner , reflecting the close historical , cultural , and institutional ties within the British Empire . Over time , more and more of Canada 's trade was proportionally done with the United States . Various governments hoped to strengthen or reverse this trend , by changing tariff policy either to one of Imperial Preference with the British , Reciprocity with the National Policy of internal development . The 1891 and 1911 elections were fought partly over the issue of closer trade relationships with the British . Following the Civil War , the United States emerged as Canada 's largest trading partner . By the time the United Kingdom joined the European Economic Community in 1973 , the idea of the UK as an alternative to the USA as Canada 's largest market was no longer viable . Canada and the United States signed the Free Trade Agreement in 1988 ( which was expanded into NAFTA by the addition of Mexico in 1994 ) . Since that time the United States has dominated Canadian trade by an overwhelming degree . After the Wars , trade with Asia began to expand , especially China . After the opening of Canada -- People 's Republic of China relations in 1970 , trade with China has expanded rapidly . </P>
<P> Historically , the issue of Canada 's largest trade partners , and dependence on particular markets , has been a major political issue . At the time of Confederation in 1867 , the United Kingdom was by far Canada 's largest trading partner , reflecting the close historical , cultural , and institutional ties within the British Empire . Over time , more and more of Canada 's trade was proportionally done with the United States . Various governments hoped to strengthen or reverse this trend , by changing tariff policy either to one of Imperial Preference with the British , Reciprocity with the National Policy of internal development . The 1891 and 1911 elections were fought partly over the issue of closer trade relationships with the British . Following the Civil War , the United States emerged as Canada 's largest trading partner . By the time the United Kingdom joined the European Economic Community in 1973 , the idea of the UK as an alternative to the USA as Canada 's largest market was no longer viable . Canada and the United States signed the Free Trade Agreement in 1988 ( which was expanded into NAFTA by the addition of Mexico in 1994 ) . Since that time the United States has dominated Canadian trade by an overwhelming degree . After the Wars , trade with Asia began to expand , especially China . After the opening of Canada -- People 's Republic of China relations in 1970 , trade with China has expanded rapidly . </P>
why is the us canada 's largest trading partner
why is the us canada 's largest trading partner
Free Trade Agreement
Free Trade Agreement