Canada U.S. Relations
The Power of Partnership
Canada and the United States have a long-standing, deeply integrated trade relationship that supports jobs and economic growth on both sides of the border. The non-alcoholic beverage sector is a prime example of this partnership, with companies relying on cross-border supply chains for raw materials, critical product inputs, packaging and distribution. Ensuring fair and stable trade policies helps maintain this vital economic relationship and benefits consumers in both countries.
Integrated Supply Chains
Well-managed supply chains are the backbone of the beverage industry, ensuring that products reach consumers in the proper condition and at the right time.
The Canadian non-alcoholic beverage sector is currently facing an environment of increased uncertainty in the global supply chain. The sector’s packaging supply chains are deeply tied to the USA’s. In 2024, more than 93% of imported PET (polyethylene terephthalate) bottles – the dominant material in beverage packaging – and more than 71% of imported aluminum beverage cans came from the USA.
Packaging and flavouring account for 45% of input costs. Because key materials like PET and aluminum beverage cans are sourced heavily from abroad, the sector is vulnerable to trade and currency shocks.
Trade Certainty is integral to economic growth
It is critical to prioritize policies that support Canadian jobs, strengthen the manufacturing sector, and ensure a stable supply chain for the beverage industry.
While much of the manufacturing takes place in Canada, sector profit margins, and in turn GDP, have been eroded by increasing input costs and supply chain disruptions, particularly for imported packaging materials. The CBA encourages decision-makers to focus on solutions that enhance economic stability and foster a strong, competitive Canadian marketplace.