Canada and the U.S. rely on each other for trade due to their geographic proximity, which facilitates efficient transportation and logistics. The two countries have a strong economic partnership, with integrated supply chains and complementary industries, leading to mutual benefits in trade. Additionally, the North American Free Trade Agreement (NAFTA), now replaced by the United States-Mexico-Canada Agreement (USMCA), has further strengthened their economic ties by reducing trade barriers and fostering cooperation. This interdependence allows both nations to enhance their economic growth and competitiveness on the global stage.
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