Canadian trades important for the Suncoast
This might come as a surprise to many of the Suncoast’s residents and Florida as a whole, but Canada is actually an indispensable trade and investment partner of the state of Florida. Canada’s longstanding impact on Florida’s economy is one that includes and transcends tourism and natural resources. In fact, as it stands, bilateral trade between the US and its neighbour in the north is quite healthy. As far as the Florida economy is concerned, Canada’s importance cannot be discounted. To further illustrate, a total of four congressional districts encompassing the Tampa Bay area make up for the largest exporters to Canada and combined, make up for 22% of all the state’s exports up north. For Canada, Florida presents enticing investment opportunities. As it stands, almost 500 Canadian companies operate in the state, lured by first-rate logistics infrastructure, affordable business costs and the geographical proximity that the state has to sizeable markets in Latin America and the Caribbean. Canadian businesses are scattered throughout the state but more mainly concentrated in the south-east, west and central parts of Florida.
An Amicable free trade agreement
Amicable free trade between the US and Canada has resulted in more enmeshed economic synthesis and reliance. Forex trading with CAD and USD, in other words foreign exchange trade between the Canadian dollar and the US dollar, is at an all-time high. The passing of NAFTA (North American Free Trade Agreement) and increased trade flows between Canada and the US has spurred on growth in inter-industry trade, the process whereby companies rely more on other ones within the same industry as part their supply chains and networks of distribution. By way of NAFTA, bilateral trade between the two countries experienced an annual growth of 4% between 1994 and 2016, proving that efficient partnering and economic growth can be conducted across a well-managed border. Due to this open trade border agreement, both Florida and Canada have been able to benefit from economic integration. Of their 10 top export categories, Florida and Canada share the following five: vehicles, aircraft, fertilizers, electrical machinery and nuclear reactors. This implies a cross pollination of sorts as specialised companies in one segment of the market supplies companies in the same field in the partner market. When it comes to real estate in Florida, Canada is their leading patron. Escaping the winter months up north also means that several billion dollars are poured into Florida’s economy by way of property taxes. Existing coffers generate more than half a billion dollars in property taxes while an extra $67 million comes annually through the sale of new property. Canadians simply love Florida.
Then of course there’s tourism
In the case of tourism in Florida, Canada is the sunshine states leader in international tourism. As far back as 2010, the figures have been indicating that Canadian tourists have been spending 24% more time in the sunshine state and 53% more money, which in 2016 equated an estimated $6.5 billion. In terms of tax revenue, Canadian tourism has generated an estimated $686.5 million, making tourism a tad bit more profitable to the economy than Canadians buying real estate. Then of course there’s the fact that Canadian tourism is responsible for hundreds of Floridian businesses and with that, thousands of employees. One wouldn’t be overselling the matter to say that Canada is an indispensable contributor to the economy of Florida. The neighbours up north’s contribution to investment, trade, real estate and tourism has forged a relationship that has birthed more than 600,000 jobs for residents of the sunshine state. It would only bode well for Florida to deepen its commercial ties with Canada.
Photo from Deposit Photos