The economy of Canada is quite advanced and most of the people enjoy high standard of living.[E1][F1][S1][I1][I2] In fact, Canada has an abundance of natural resources, such as forests, minerals, fish, and hydroelectric power. [S1]

Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban.

Canada produces 20% of the world’s wheat, in fact agriculture is still an important business in Canada, although only about 7% of the land is suitable for farming.

Canada is a major exporter of raw materials. It is lucky enough to have all minerals necessary to a modern economy, from nickel and zinc to gold, iron ore and uranium. It exports large quantities of crude oil and natural gas. But the most important export comes from the forests covering half the land area of Canada. Trees are used to produce wood pulp for paper manufacturing and this product is exported all over the world.

Canada is not only a producer of raw materials, but also a major manufacturing country. Today the leading industrial activities are petroleum refining, motor vehicle production, pulp and paper milling and equipment manufacturing.

Canada is therefore a trading nation and United States are his major trading partner.

The 1989 US-Canada Free Trade Agreement (FTA) [E1][F1] and the 1994 North American Free Trade Agreement (NAFTA) [E1][F1] [S1][I1] (which includes Mexico) touched off a huge increase in trade and economic integration with the US. Although Canada sells goods and services around the world, more than 80% of exports and 70% of imports are with the United States.

Canada is evolving into a knowledge-based economy. Service industries now employ three out of four Canadians. More and more, Canadians work in offices, stores or warehouses rather than farms, mines, mills or factories.

Canada’s economic well-being is therefore tied to many factors: the wealth of natural resources; the strength of its manufacturing and construction industries; the health of the financial and service sectors; the ability to span distances using communications and transportation technologies; dynamic trade relationships with other nations; and the ability to compete in a global marketplace. [S1]