how do countries end up with a trade deficit
Balance of trade If a country exports a greater value than it imports, it has a trade surplus or positive balance, and conversely, if a country imports a greater value than it exports, it has a trade deficit or negative balance. The notion that bilateral trade deficits are bad in and of themselves is overwhelmingly rejected by trade experts and economists.[2][3][4][5][6]
List of the largest trading partners of Canada Historically, the issue of Canada's largest trade partners, and dependence on particular markets, has been a major political issue. At the time of Confederation in 1867, the United Kingdom was by far Canada's largest trading partner, reflecting the close historical, cultural, and institutional ties within the British Empire. Over time, more and more of Canada's trade was proportionally done with the United States. Various governments hoped to strengthen or reverse this trend, by changing tariff policy either to one of Imperial Preference with the British, Reciprocity with the National Policy of internal development. The 1891 and 1911 elections were fought partly over the issue of closer trade relationships with the British. Following the Civil War, the United States emerged as Canada's largest trading partner. By the time the United Kingdom joined the European Economic Community in 1973, the idea of the UK as an alternative to the USA as Canada's largest market was no longer viable. Canada and the United States signed the Free Trade Agreement in 1988 (which was expanded into NAFTA by the addition of Mexico in 1994). Since that time the United States has dominated Canadian trade by an overwhelming degree. After the Wars, trade with Asia began to expand, especially China. After the opening of Canada – People's Republic of China relations in 1970, trade with China has expanded rapidly.