The value of trade between the Province of Ontario, Canada, and the United States is
currently approximately $130 billion. The purpose of this paper is to identify how the value of
trade between the United States and Ontario changed from 1977 to 1987, focusing on the
shift in modal share and in the type of major commodities traded. In particular, the reasons
for the shift in modal share and subsequent actions by the provincial government will be
documented.

BACKGROUND A review of 1987 data (Statistics Canada, International Trade Division,
computer tapes, 1977 to 1989; unpublished import and export data) finds that Ontario is the
principal importing and exporting province within Canada, accounting for 64 per-cent of
Canada's import value, and 47 percent of Canada's export value (Figure 1). The United
States is Canada's most valued trading partner; the US provides 68 percent of its imports,
and is the consumer of 76 percent of its exports (Figure 2). Conversely, Canada is the most …