A new report says the U.S. benefits at least as much from trade with Canada as Canada benefits.

The report by economist Jim Stanford at the Centre for Future Work says claims by incoming U.S. president Donald Trump that the bilateral merchandise trade deficit constitutes a B次元官网网址渟ubsidyB次元官网网址� are false.

He says Canada is the worldB次元官网网址檚 largest market for U.S. exports and that the U.S. enjoys a large surplus in services trade with Canada, offsetting much of the deficit in merchandise.

The report also says the U.S. enjoys a net surplus on investment income from Canada.

It notes that 76 per cent of Canadian exports to the U.S. are used as inputs by U.S. businesses in their own production B次元官网网址� more than with other trading partners.

Trump has threatened to implement 25 per cent tariffs on U.S. imports from Canada and Mexico once he is sworn in as president unless the two countries stop drugs and people from illegally crossing their borders into the U.S.