Thank you very much, Kirsten.
I am David Morrison, the Global Affairs Canada assistant deputy minister for the Americas, which includes the United States and everything to the south. I am also the chief development officer of the department.
I am very pleased that the committee has chosen to open its business with a session that includes the examination of Canada's most important trade and economic relationship, the relationship with the United States, and to look more broadly at our growing ties with Mexico and the rest of the Americas. These are issues of critical importance to the prosperity of Canada.
First, let me restate the overarching economic reality of Canada's economic relationship with the United States. The U.S. is by far our largest trade and investment partner. Some details will help to elaborate this story.
Almost 25% of Canada's GDP is generated by direct exports to the United States. In 2014 Canada exported about $450 billion in goods and services to the U.S., which constitutes 77% of our total global exports. Canada sells more to the U.S. in one year than to the rest of the world over three years. In 2014, the most recent year for which we have full-year statistics, two-way trade was $870 billion in goods and services. An average of 2.4 billion dollars' worth of trade crossed the border each and every day. The U.S. is the top export destination for every province and territory in Canada, and the same holds true in reverse. Canada is the number one market for 35 of the 50 American states. The U.S. is the single biggest investor in Canada. In 2014 the stock of American investment in Canada was $361 billion, representing half of the total foreign direct investment in Canada.
I've offered these statistics on trade and investment to indicate that while we may have a few irritants with the U.S. from time to time, overall this is a vibrant economic relationship with no equal. It is also worth underscoring that the U.S. is a comprehensive partner for Canada across a range of other issues, such as the environment, energy, climate change, continental defence, international security, and people-to-people relations.
It is also important to highlight our relations with Mexico. For over 70 years, Mexico has been a trusted and long-term partner for Canada. As one of its top priorities, the Government of Canada is committed to the renewing of relations with Mexico, both bilaterally and trilaterally within North America.
Canada's trade and investment relationship with Mexico has steadily grown since the entry into force of NAFTA in 1994. Canada and Mexico are each other's third largest trading partner, with two-way trade totalling $34 billion in 2014.
Canadian direct investment in Mexico reached over $13 billion in 2014, while Mexican direct investment in Canada totalled $884 million. Our commercial linkages are based on a deepening partnership that holds potential for both countries with a joint production platform that serves as a springboard for North American and global markets.
Turning now to the wider hemispheric context, I note that Canada has established strong relationships with the Pacific Alliance countries: Chile, Colombia, Mexico, and Peru. We're seeking to extend our engagement with this dynamic economic integration initiative. An active observer, Canada supports the Pacific Alliance's efforts to promote innovation and competitiveness as drivers for sustainable and inclusive growth in the region. These relationships are important and enduring. Canada has free trade agreements with each of the Pacific Alliance countries as well as with Costa Rica, Panama, and Honduras. Costa Rica and Panama are both applying to become full members of the Pacific Alliance. As my colleague Kirsten Hillman mentioned we have also just concluded the modernization of the Canada-Chile Free Trade Agreement.
Thank you again for the opportunity to appear before this committee and help renew the relationship between Parliament and our department. My colleagues and I would welcome your questions and comments.
Thank you.