Canada is a trading nation, with exports a critical part of its economic strategy. But trade has not been a significant source of economic growth for many years, as its contributions were gradually overshadowed by consumer spending and residential investment. Over the last 20 years, exports have risen at just half the pace of the overall economy. And despite trade agreements offering some of the best market access in the world, the U.S. remains the destination for three-quarters of Canada's goods exportsabout the same as 30 years ago.

Meantime, Canada's share of the U.S. market has declined in the face of fierce competition. Between 2000 and 2020, China usurped Canada as the top source of imports to the U.S.its market share rising to 18.6% as Canada's fell to 11.6%. Following the global financial crisis, Mexico bumped Canada out of second place, as Canada's share of North American auto assembly slid to 10% from 17%.

Canada's underperformance in trade is often tied to geographyit ships more to developed economies with slower growth than to rapidly expanding emerging markets. But higher unit labour costs due to slow productivity growth, a stronger currency and regulatory issues have played a part too.

Canada isn't a major advanced technology supplier to the U.S. Its exports remain dominated by natural resources, transportation equipment and energywith mineral fuels accounting for 29% of all exports, followed by motor vehicles at 17%. But its advanced products play a significant role in some arenas, particularly information and communication, electronics, life sciences and aerospace, where shipments of commercial passenger planes, turbojet and other aircraft engines and parts top the list. Canadian exports of knowledge-intensive services including research and development, computer and information services, and IP grew by nearly 12% annually over the past three years, rising to $27.5 billion in 2019.

Opportunities in these and other higher-end exports could expand further as supply chains regionalize, more services and information move to virtual platformsand concerns about supply-chain resilience and cybersecurity drive demand for local suppliers. For instance, the pandemic has driven major shifts in how healthcare is delivered, amplifying demand for technology that enables virtual healthcare. As Canada's population ages, emerging technologies will also play a growing role in homecare services, delaying hospital and long-term care admissions.

1. WHAT ARE THE COMPONENTS SHOULD CANADA REASSESS TO BECOME MORE COMPETITIVE?

2. GIVE AN OVERVIEW, FINDINGS AND CONCLUSION TO THIS PARAGRAPH.