Tyler Cowen links to this paper and quotes from it:
Most service production is consumed domestically and virtually all public services are not traded…the most remarkable structural change in the Canadian economy is that Canada was less integrated in world markets at the end of 2006 than it was a decade earlier measured by intense export openness
I didn’t read it. The point as I see it is that non-resource Canada is becoming a service provider to itself.
So, in caricature: Canadians trade energy, minerals and timber for manufactured goods and swap food with California and Chile. Mostly, though, Canucks just scratch each others’ backs.
Not Unreasonable 