Naturally, Montana and Canada share a close relationship as neighbors and business partners.
More than 913,000 Canadians visit the state annually, collectively spending $275 million on average, according to government data.
On the flip side, nearly 131,000 Montana residents voyage north each year, spending an average of $45 million.
The trade relationship is even more significant. As Montana’s No. 1 customer, Canada businesses and consumers paid $586 million for exports from the state, such as energy, equipment and agriculture products, in 2013. The overall bilateral trade relationship was worth $5.8 billion that year.
Hoping to strengthen and expand that relationship, a new effort is underway involving city and business leaders in the region that is seeking more opportunities for Montana companies and residents to work with firms in British Columbia and Alberta.
Last week Montana West Economic Development and the Montana World Trade Center co-hosted a luncheon featuring members of the Canadian Consulate, including Trade Commissioner Stephen Davis and Senior Trade Specialist Jerome Pischella. The event drew more than 80 people to the Hilton Garden Inn in Kalispell.
According to Pischella, Montana business owners have a lot to gain by familiarizing themselves with Canada. Although the two places are similar in many ways, they are at once vastly different, he said.
“We really just don’t know one another. Americans think they know Canada, but they don’t,” he said. “It’s easier to do business with each other if we know one another.”
Pischella recommended business owners become familiar with the different regulations and standards between the U.S. and Canada. That also includes knowing simple yet significant factors, such as the strict law barring Americans who have a DUI from crossing the border into Canada.
“The laws can change a lot from one another,” he said, adding that the Consulate continues to work to harmonize business regulations between the two countries to improve commerce.
Tourism and real estate are the two industries that benefit most from Canadian business, but others, such as manufacturing and technology, have ample opportunities to grow, according to Kim Morisaki, business development manager at MWED.
“Most Canadians only connect us with tourism. But we make a lot of things in this valley. Now how do we get that message out?” she asked.
That’s the goal of an upstart task force developed in the valley in the last year, featuring local business owners and city officials who are researching opportunities for expanded commerce between Montana and Canada.
“We’re trying to build up more personal relationships and business relationships. But you have to get people in a room to talk to each other and find out what they have in common,” Morisaki told the Beacon after the event. “It’s networking.”
The dynamics are changing, too. The global oil benchmark plunged almost 50 percent in 2014, dropping to roughly $50 a barrel last week, the lowest price in nearly six years. In light of the dropping benchmark, gasoline futures for February settled at $1.34 a gallon, and diesel hit $1.71 a gallon.
The impacts are significant in Alberta, where the oil and gas industry is largely tied to the economy. Crude petroleum is the top Canadian import in Montana, worth $4.3 billion, according to government data.
The Canadian dollar has also dropped in value compared to the American dollar, a further disincentive for travelers crossing into Montana.
“For Montana’s tourism, that means fewer dollars from Canadians,” Pischella said.
“That also means Montana has more purchasing power in Canada.”
The potential dip in tourism is a good reason to diversify the business ties between Canada and Montana, he said.
“I was really encouraged that there’s so many people who recognize how important the relationships with Canada are, just for the general business environment here,” Morisaki said. “Tourism and real estate are terrific, but there are other opportunities as well.”