CHAPTER II.    Leading Trade Prospects for U.S. Business

The following section describes and lists the leading trade prospects
in Canada for U.S. exporters of both food and non-food products.
Detailed statistical and market data concerning each individual best
prospect can be found in Appendix B.


     A.   Best Prospects (Non-Food Products and Services) for U.S. Exporters

The Canadian import market, already the most favorable for U.S.
goods and services of any in the world, should see continued growth
through 1995 and beyond.  U.S. goods and services account for an
overwhelming share of the import market in Canada, and the
United States remains by far Canada's largest export market and
import supplier.  On the basis of current market trends and market
conditions, the following sectors are considered to be best prospects
for U.S. exports to Canada.

1.   CPT       Computers and Peripherals

2.   CSF       Computer Software

3.   APS       Automotive Aftermarket Parts

4.   TEL       Telecommunications Equipment

5.   MED       Medical Equipment

6.   POL       Pollution Control Equipment

7.   BLD       Building Products

8.   APS       Automotive Parts and Service Equipment

9.   PMR       Plastic Materials and Resins

10.  SPT       Sporting Goods and Recreational Equipment

11.  ELC       Electronic Components

12.  HCG       Household Consumer Goods

13.  APP       Apparel

14.  MHM       Materials Handling Machinery

15.  FUR       Furniture

16.  TXF       Textile Fabrics

17.  AIR       Aircraft and Parts

18.  ELP       Electrical Power Systems

19.  MTL       Machine Tools and Metalworking Equipment

20.  LAB       Laboratory and Scientific Equipment

21.  PKG       Packaging Equipment

22.  PCI       Process Controls:  Industrial

23.  APG       Airport and Ground Support Equipment

24.  DNT       Dental Equipment

25.  VET       Veterinary Equipment and Supplies

     B.   Best Prospects (Food/Agricultural Products) for U.S. Exporters

Canadian imports of U.S. agricultural products, particularly high
value products, showed strong, consistent annual growth following
the implementation of the Canadian Free Tree Agreement (CFTA)
on January 1, 1989.  The CFTA introduced a timetable for the
phase out of tariffs (and in some cases an accelerated move to zero
duty immediately), and alerted many emerging U.S. exporters that
Canada represents an easily accessible market with profitable
opportunities enhanced by many common cultural customs and a
food distribution system similar to that in the United States.

In the five year period ending 1993, U.S. agricultural exports to
Canada more than doubled to US$5.3 billion from US$2.2 billion.
Most of the increase over the period was attributable to the growth
in exports of consumer-oriented agricultural products.  Exports of
U.S. bulk agricultural products grew by 33 percent during the same
five year period.

Beginning 1992, the Canadian dollar showed considerable weakness
against its U.S. counterpart, a trend that continued throughout 1993
and early 1994.  As a result, the performance of Canada's dollar has
tended to negatively distort non-currency related growth prospects
for U.S. agricultural products.

1.             Fresh Vegetables

2.             Baked Goods

3.             Animal Feeds

4.             Pet Food (Dog and Cat)

5.             Snack Food

6.             Breakfast Cereal and Pancake Mix

7.             Fruit and Vegetable Juices

8.             Milled Rice