As Canada’s primary economic lifeline, the nearly 9,000-kilometer border with the United States requires modernized infrastructure and strategic binational coordination to secure $1.5 trillion in annual trade and facilitate the daily movement of 400,000 people.
Few international relationships are as deeply integrated and as strategically important as that between Canada and the United States. Nowhere is that integration more visible than at the border, where geography, trade, and people converge every day at a scale unmatched anywhere in the world. Two out of every three Canadians live within 100 kilometers of the US border, underscoring how closely tied Canada’s population and economy are to this shared boundary. At nearly 9,000 kilometers, it is the longest international land border in the world and one of the most consequential.
That proximity is reflected in trade. The United States accounts for roughly 75-percent of Canada’s exports and about 60 percent of its imports, making it by far Canada’s most important economic partner. At the same time, Canada’s total international merchandise trade reaches approximately $1.5 trillion CAD annually, meaning that nearly two-thirds of its GDP is tied to trade. Even as Canada diversifies toward global markets, the United States remains an essential transportation corridor and a critical source of inputs, value-added production, and market access.
This economic integration depends on a complex, multimodal border system. Borders are not only land crossings, but also marine and aviation gateways that keep goods moving efficiently. In 2024, about 46-percent of Canada’s merchandise trade by value moved by road, followed by 21-percent by marine, 12-percent by air, ten percent by rail, and 11-percent by other modes, including pipelines. The performance of this infrastructure directly shapes Canada’s competitiveness in global markets.
But the border is not just about goods. It is also about people. Approximately 400,000 individuals cross the Canada-US border each day, reflecting deep social, economic, and cultural ties. At the same time, immigration is driving Canada’s growth, accounting for more than 95-percent of population increases, with over 800,000 new arrivals in 2024 alone.
Taken together, border infrastructure is not a peripheral issue. It is central to Canada’s security, economic competitiveness, and ability to manage the movement of people and sustain border communities.
The idea that security impedes trade is outdated. Today, the opposite is true. The right investments make borders safer and faster.
Modern tools such as non-intrusive imaging, advanced cargo and passenger data, and AI-driven risk analysis allow border agencies to focus on what matters. High-risk shipments can be flagged with precision, while trusted goods and travelers move more quickly. Security, done right, is not a barrier. It is a filter.
Canada’s more than $1 billion CAD border security spending commitments in 2025 reflects this shift. New personnel, upgraded equipment, and stronger coordination with US counterparts are all steps in the right direction. The real test, however, is whether these investments are embedded in modern, well-functioning infrastructure. Without that foundation, even the most advanced technology becomes a patch rather than a solution.
If security determines what moves, infrastructure determines how well it moves. Canada faces a difficult reality. Progress in recent years is real, but insufficient.
There are important gains driven by both public and private investment. The Gordie Howe International Bridge will reshape one of North America’s most important trade corridors. Preclearance expansions such as Billy Bishop Toronto City Airport and targeted upgrades at ports of entry are improving flow.
Canada’s National Trade Corridors Fund, with $4.1 billion CAD in federal funding leveraging more than $10 billion CAD in total investment, has begun to address long-standing bottlenecks across ports, rail, and road networks. Canada has also begun to scale up its ambitions. The transition from the National Trade Corridors Fund to the newly launched $5 billion CAD Trade Diversification Corridors Fund signals a shift from improving existing networks to actively reshaping them for global markets.
These are meaningful steps. They show that Canada recognizes the link between infrastructure and competitiveness. But the gap remains, and the data is difficult to ignore.
According to Export Development Canada, Canada continues to invest less in infrastructure than many of its OECD peers, even as trade volumes grow more complex and supply chains more demanding. In 2018, infrastructure investment stood at just 0.6 percent of GDP, compared to an average of 0.72 percent across major peer economies. Over time, Canada has been investing less relative to the scale of its trade. This imbalance is now affecting performance.
The consequences are measurable. Productivity in the transportation sector has largely stagnated since 2010. Logistics performance is slipping. Congestion and aging infrastructure continue to create bottlenecks across key export corridors, including road, rail, marine, and air. These constraints undermine reliability for Canadian exporters.
The scale of the challenge is also growing. Estimates suggest Canada faces an infrastructure deficit of between $110 billion and $270 billion CAD, with as much as $4.4 trillion CAD in trade-enabling investment needed by 2070. At the same time, regulatory complexity and fragmented governance mean slow project delivery and this discourages private sector participation.
In a global economy where reliability matters as much as cost, these weaknesses have real consequences. Trade does not simply follow agreements. It follows efficiency.
The greatest risk is not that Canada is doing nothing. It is that Canada is acting without sufficient coordination.
Border infrastructure is inherently shared with the United States, yet coordination has lagged. The 2011 Beyond the Border Action Plan established a roadmap for bilateral cooperation across a range of issues, with joint planning guided by the 2014 Canada-US Border Infrastructure Investment Plan. Today, that vision has largely stalled. In its place is piecemeal progress rather than a coherent joint strategy.
The gap is even more pronounced at the continental level. North American supply chains are deeply integrated, but trilateral infrastructure planning with Mexico remains limited. There are strong examples of innovation on the US southern border, such as the Pharr-Reynosa crossing , which has become a leader in agricultural trade. However, these use cases are not widely known on the northern border.
At the same time, regions such as Texas are moving much more aggressively to expedite and expand areas of trade competitiveness. Coordinated strategies like the Texas Border Transportation Master Plan, are attracting investment, streamlining crossings, and strengthening trade flows.
The conclusion is straightforward. Coordination is not optional. It is a competitive advantage.
When we talk about trade, we think about goods moving across the border, but it’s people that make the system work. They are also placing new demands on border infrastructure.
Each day, nearly half a million people cross the Canada-US border. They include workers, tourists, students, and business travelers. They are the human links that sustain economic integration. At the same time, Canada’s growth is increasingly driven by immigration. This dual reality is reshaping the demands placed on border infrastructure.
It is no longer enough to process people on an ad hoc basis. The system must do so quickly, securely, and at scale, with consistent practices on land, sea, or air. This includes facilitating legitimate travel while identifying the small number of bad actors who seek to exploit the openness that Canadians and Americans rely on. The challenge is precision. Screening must detect misuse and fraudulent activity without undermining efficiency or trust.
Risk management programs like preclearance, biometric screening, and trusted traveler systems are part of the solution. Their effectiveness depends on physical infrastructure, inter-operable technologies, and cross-border coordination that can handle growing volumes while maintaining both security and a seamless traveler experience.
Delays, congestion, and outdated facilities do more than inconvenience travelers. They discourage tourism, disrupt business travel, and weaken the connections that underpin economic growth. Human mobility is not separate from competitiveness. It is a core part of it.
Border infrastructure is no longer just about managing a line on a map. It is about securing supply chains, enabling trade, and facilitating the movement of people in a world that is more connected and more contested than ever. Canada has made important progress, but the path forward requires more than investment alone. It requires coordination, ambition, and a clear recognition that efficiency at the border is a source of national strength.
At the same time, Canada’s push to diversify trade toward global markets must be grounded in economic reality. The United States will remain its most important partner and its most critical corridor. Expanding global trade will only succeed if north–south flows are maintained and strengthened through sustained investment in modern, reliable border infrastructure.
