MAKING HISTORY: Inside South Carolina and Canada’s $5B trade relationship
South Carolina and Canada have been making history, with inward investments reaching a 10-year high. According to Canadian Ambassador to the United States, Kirsten Hillman, the bilateral economic relationship between these regions has become one of the largest in the world, strengthened by shared legal and environmental factors and blossoming tourism and trade connections.
Record Trade Investment
As of March this year, South Carolina has reportedly exported $4.99 billion worth of goods and services to Canada, accounting for an impressive 13% of the state’s total exports. This places Canada as the second-biggest customer for South Carolina, following closely behind Germany. Notably, the state’s overall export growth rate, at 18%, has surpassed the country’s national growth, which fell slightly by 2.2% in 2022 according to reports by the South Carolina Department of Employment and Workforce.
Canadian Companies in South Carolina
The mutual economic benefit is apparent with 154 Canadian owned companies currently employing over 13,450 South Carolinians and two new Canadian companies are expected to expand into the state, providing an additional 845 job opportunities.
Niagara Pharmaceuticals is set to establish its first U.S. operation in Cherokee County. The $9 million investment will fund its new facility, and create 45 new jobs. In York County, Silfab Solar’s new location represents an investment of $150 million, and will provide job opportunities for an additional 800 people.
Why South Carolina?
While South Carolina’s growth are a deciding factor for Canadian companies to choose it as a workplace location, the state’s business-friendly environment is also a significant draw, according to Hillman. Current sectors such as automotive production and other advanced manufacturing sectors all contribute to an ecosystem that’s attracting Canadian firms. In fact, since the COVID-19 pandemic, South Carolina and Canada’s relationship in these areas has not only recovered, but has grown. Hillman emphasized that it is essential for Canada’s production.
Canadian Tourists and the Defence Relationship
Aside from economic reciprocity, Canada contributes significantly to South Carolina’s tourism sector, with an estimated 10,000 to 15,000 visitors from Canada frequenting the state annually. This is further encouraged by the recent addition of a daily flight from Toronto, marking Canada as the single international flight route into Charleston. The defense relationship between Canada and the U.S. remains strong as well, with Hillman underlining the presence of over 1,000 Canadian forces and their families in the U.S, involved in joint operations and studying at educational institutions including The Citadel.
In summary, the economic relationship between Canada and South Carolina is noteworthy and prosperous, and it commands attention according to Hillman. The future of this relationship seems geared up for years of continued growth and mutual cooperation as they create various opportunities for workers on both sides of the border.