Madam Speaker, I will be sharing my time with my good friend, the member for Vancouver Granville.
There should be no doubt that the Government of Canada places the highest priority on strengthening our trading relations with the United States. For a place like Surrey Centre, this is in no way undiminished, as we are a border city and a port city. Trade is of vital importance. These are indeed unique relations that are tremendously and mutually beneficial to both our nations. Our partnership is not just forged by our shared geography. It is also shared by our similar values, common interests and strong personal connections, which include family connections.
Perhaps most relevant to the subject of our debate today is that our relations are based on deep and powerful economic ties. Millions of jobs depend upon trade and investment between Canada and the United States. We are each other's largest trading partners, with nearly 3.6 billion dollars' worth of goods and services crossing the border each day in 2023.
Our government has worked tirelessly to strengthen and secure the relationship by supporting and helping to ensure the safe flow of goods and people across the border. That is vital to both our countries' economic competitiveness and prosperity, which were key parts of our efforts in securing the Canada-United States-Mexico Agreement, CUSMA, which went into force in July 2020. This agreement is the anchor for our strong, balanced trading relationship with the United States and the foundation for this relationship is built on the resilience and effective supply chains that carry across all key sectors of the economy. As a result, today, we are each other's largest trade partners with, as I said, nearly 3.6 billion dollars' worth of goods and services crossing the borders each day.
Canada is particularly significant as a secure supplier of energy to the United States' domestic market. Last year, for example, 60% of U.S. crude oil imports originated from Canada. Canada and the U.S. also have a significant investment relationship. The U.S. is the single greatest investor into Canada. These trade and investment relationships support millions of jobs here in Canada. They also support millions of jobs in America. That is because today Canada buys more from the United States than China, Japan and Germany combined. Maintaining and expanding this flow of goods, of investment and of people across the border is absolutely vital for both our countries' economic prosperity.
By the same token, undermining the effectiveness of this relationship by imposing tariffs on Canadian exports to the United States would take us in the opposite direction. There should be no doubt that imposing a 25% tariff on all Canadian products would be harmful to U.S. consumers, U.S. workers and the U.S. economy as a whole. In fact, roughly 70% of Canadian goods exported to the United States are used in the production of other goods or, as they say, advanced manufacturing by U.S. manufacturers. This means that imports from Canada are effectively feeding the U.S. economy and U.S. industry with vital inputs, making it stronger and more competitive. It also means that putting a 25% tariff on these Canadian imports would impose a massive increase in the input costs on U.S. manufacturers.
The harm to American manufacturers would not stop there. That is because American tariffs on Canadian goods would open the door to retaliatory tariffs, and that is something we do not want to do. I have been across several states in the United States over the last nine years as a part of my parliamentary duties, especially during the renegotiations of CUSMA, working with the National Governors Association and the Western Governors' Association. I can assure members that 36 U.S. states currently still rely on Canada as their number one export market and over 40 states export more than 1 billion dollars' worth of goods per year into Canada.
Raising the costs of those goods would not just be bad for Canadian consumers. It would be really bad for American manufacturers and their consumers who depend on those sales. Our government does not want to go down that road. We know that efficient trade is the way to secure strong economies on both sides of the border. We know that because, since 1989, the North American free trade agreements have generated economic growth and rising standards of living for the people of all three member countries.
The entry into force of NAFTA in 1994 created the largest free trade region in the world, and by strengthening the rules and procedures governing trade investment in North America, the agreement has proven to be a solid foundation for building Canada's prosperity and has set a valuable example of the benefits of trade liberalization for the rest of the world. What did it mean for Canada? It meant that our total merchandise exports to the United States in 2018 reached $438 billion, representing a fourfold increase from the $101 billion in 1989 before this agreement. Such a dramatic expansion of Canadian exports to a single country is unprecedented, and NAFTA's most recent successor has made us even stronger.
We can see, in clear and unequivocal terms, how free and fair trade between Canada and the United States benefits both countries. We are communicating these points and signalling to the incoming administration our readiness to work together to advance our shared economic prosperity and security. In doing so, we will remain open to the perspectives of our American partners. In fact, we share many of those perspectives. We share U.S. concerns regarding unfair competition and global market distortions, including overcapacity caused by non-market policies and practices that harm our workers and businesses.
We can assure our American partners that Canada will not be a transshipment risk or a vector for trade practices that would harm our collective economic security. To take just one example, Canada imposed a 100% surtax in October on electric vehicles and a 25% surtax on steel and aluminum products from China. Canada is considering additional surtaxes on imports of batteries and battery parts, semiconductors, solar products and critical minerals from China.
We will always defend Canada's interests and do what is best for Canadians and the Canadian economy. We will always do so with the understanding that Canada and the U.S. have a unique relationship and partnership. This partnership works best, creating jobs, economic growth and shared prosperity on both sides of the border, when we work together in common purpose and understanding.