Total two-way merchandise trade between Canada and the United States is larger than total U.S. merchandise trade with the European Union, or total U.S. merchandise trade with Japan. The most traded commodities are transportation equipment, investment-related equipment, energy, other natural resources and agriculture. U.S. investment in Canada represents roughly 70 percent of total foreign direct investment in the country and is concentrated in manufacturing, finance, and the resource sectors. E. Infrastructure Situation 1. Transportation Infrastructure Canada's transportation systems are highly developed.
Regional lines supplement the transcontinental lines.
The provinces have jurisdiction over highways in Canada. Common carriers are required to obtain a license from the Department of Highways and Transport of the province in which travel occurs. Since January 1988 when the Motor Vehicle Transport Act went into effect, truckers who wish to cross provincial and international borders do not have to prove that their service is consistent with public convenience and necessity. U.S. firms may ship goods of their own manufacture to destinations in Canada in their own trucks. However, they may not carry other goods, back haul to the United States, or act in any way as a common carrier unless they are in a state that has made reciprocal arrangements with a Canadian province to do so.