The United States and Canada are neighboring countries, therefore trade is easy and there are opportunities for both countries to benefit. In 2010, the U.S. and Canada signed an Agreement on Government Procurement. The new agreement provides for permanent U.S. access to Canadian provincial and territorial contracts in accordance with the World Trade Organization (WTO) Government Procurement Agreement (GPA). In addition, the agreement enables American companies to compete for Canadian provincial and municipal construction contracts not covered by the GPA through September 2011. The United States will provide reciprocal access for Canadian companies to 37 states already covered by the GPA and a limited number of Recovery Act programs (USTR.gov, 2013). Trade surplus is defined as an economic measure of a positive balance of trade where a country’s exports exceed its imports (investopedia.com, ND). When a trade surplus occurs, it represents a net inflow of domestic currency from foreign markets. A deficit is the opposite, and would represent a net outflow. When the United States has a trade surplus of Canadian goods, it has control over the majority of its own currency. This situation would create a drop in Canadian currency value. When a country’s currency loses value, purchasing imports is more expensive and creates an even larger imbalance. The last time there was a surplus of Canadian imports was in 2010. According to an article in Business in Canada, this was due in part to the natural resources of the nation. Traditionally, a surplus would drive the price of the goods down, but there is no evidence to support a drop in prices of natural resources in the U.S economy due to a surplus in 2010. International trade could slow Canada’s GDP, it could also affect the domestic market in a negative direction if imports replaced the country’s current source