Wednesday, November 28, 2007

Why does this matter?

I can see why people would think a large trade deficit would be a problem, but I can't figure out why people think it matters for a certain industry, or country. Here's an exert from CEP news:

09:32 11/28 (CEP News) Ottawa – Canadians flocked to the U.S. to spend their mighty loonies in the third quarter, helping push Canada's international travel deficit its highest level ever, Statistics Canada reported Wednesday.

Canadians spent almost $3.9 billion south of the border in the third quarter, up 10.3% from the second quarter. The higher spending was the result of increased same-day and overnight travel to the U.S. Canadian same-day car travel, often used to measure cross-border shopping patterns, passed the 6-million-trips mark for the first time since the terror attacks of Sept. 11, 2001. It reached 6.1 million trips between July and September, up 4.2% from the second quarter.

Overnight travel to the United States reached 4.5 million trips in the third quarter, 7.5% higher than in the second quarter and the highest level in 15 years. As a result, the travel deficit with the United States climbed $362 million to $1.8 billion.

Spending by Americans visiting Canada remained unchanged, at $2.1 billion. However, overnight travel to Canada slipped to 3.3 million trips, down 1.5% from the second quarter.

--I understand that the tourism industry could be hurt by this, but then why not make the article about the tourism industry, not a "travel deficit." Get the full version here.

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