Canada FDI & Trade with Texas

Canada Doing Business in Texas

Canadian investment in Texas continues to grow as companies seek a stable, cost-competitive, and scalable platform for U.S. expansion. With strong trade ties, aligned industries, and long-standing economic relationships, Texas has become one of the most attractive destinations for Canadian companies doing business in the United States.

Texas offers Canadian firms direct access to the world’s largest consumer market, supported by a pro-business regulatory environment and one of the most diverse economies in North America. From energy and advanced manufacturing to technology, life sciences, and corporate services, Texas provides the scale, infrastructure, and certainty Canadian companies need to expand with confidence. The state’s deep energy ecosystem is especially aligned with Canadian industries, supporting collaboration in oil and natural gas trade, petrochemical production, LNG and pipeline infrastructure, and emerging technologies such as hydrogen and carbon capture, all within an integrated North American energy market.

Overhead shot of a downstairs cafe where people can be seen eating, networking, and working
A car being assembled by robots
The US and Canadian flag raised on flagpoles
  • Foreign Direct Investment
  • Trade and Infrastructure
  • Cultural Ties
Foreign Direct Investment
Overhead shot of a downstairs cafe where people can be seen eating, networking, and working

Canadian Companies Operating in Texas

From manufacturers to financial service providers, Canada-based companies in Texas are growing in the Lone Star State.

Examples of Canadian companies operating in Texas include Bombardier, Carestream Health, Celestica, Columbia Pipeline Group, Cott Beverages, Dynamex, Enbridge Energy Partners, First American Payment Systems, GSE Environmental, GuestLogix, Gulf Stream Marine, Mitel Networks, Omega Protein, Saputo Dairy Foods, Shawcor Energy Services, TD Securities, Tucker Energy Services, Village Farms, Waste Connections US and West Fraser.

Shared industries between Canada and Texas include aerospace and aviation, commercial and consumer services, consumer markets, electronics, energy, financial services, food and beverage products, health care, industrial products, logistics, manufacturing, natural resources, oil and gas, professional services and telecommunications. Cumulative foreign direct investment between January 2011 and December 2023 included 179 projects, with $8,961 million in capital investment and 16,035 jobs created by 155 companies.

Trade and Infrastructure
A car being assembled by robots

Trade Between Canada and Texas

Shared industries and connected infrastructure keep trade between Canada and Texas strong.

Texas exports to Canada in 2023 totaled $35,883 million, including the following commodities: mineral fuel and oil, electric machinery, industrial machinery, plastics and vehicle parts. Texas imports from Canada in 2023 totaled $36,995 million, including the following commodities: mineral fuel and oil, industrial machinery, aircraft parts, special provisions and vehicle parts. Texas port districts that have active trade with Canada include Dallas-Fort Worth, El Paso, Houston, Laredo and Port Arthur.

Direct flights to/from Calgary, Montreal, Toronto and Vancouver are offered at Dallas Fort Worth International (DFW) and Houston George Bush Intercontinental (IAH), while direct flights to/from Edmonton are offered at Houston George Bush Intercontinental (IAH).

Cultural Ties
The US and Canadian flag raised on flagpoles

Cultural Ties Between Canada and Texas

Canadians in Texas work to continue historically strong ties between their home country and Texas.

The Canada-Texas Chamber of Commerce (CTCC) is a marketplace advocate and goodwill ambassador for companies doing cross-border business between Canada and Texas. The organization facilitates trade between Canada and Texas by supporting the relationship and historically strong ties between the U.S. and Canada, advocating bilateral trade focused public policy and facilitating collaboration with other organizations, businesses and public-sector officials.

Why Canadian Companies Choose Texas

Texas consistently ranks among the top destinations for Canadian investment in Texas because it removes many of the structural barriers associated with U.S. expansion.

The state’s Texas business climate is defined by predictable regulations, long-term policy stability, and a strong track record of supporting foreign direct investment. Texas does not levy a traditional state corporate or personal income tax and instead operates under a franchise tax structure.

Scale is another major advantage. Texas is home to a workforce of more than 15.5 million people and is the nation’s fastest-growing large state. Its central location allows businesses to reach most U.S. markets within a two-day truck drive, supported by the country’s largest highway network, extensive Class I rail service, and international cargo airports.

Industry alignment further strengthens Texas’s appeal. Canadian companies expanding into energy, clean technology, advanced manufacturing, aerospace, life sciences, technology, and corporate services find established ecosystems and experienced partners across the state’s major metros.

Texas–Canada Economic Relationship

The Texas–Canada economic relationship is one of the strongest subnational trade partnerships in North America.

Canada consistently ranks among Texas’s top trading partners and remains one of the state’s most important international economic partners. Total trade between Texas and Canada exceeded $74 billion in 2023, spanning sectors such as energy products, machinery, chemicals, transportation equipment, technology, and professional services.

These trade flows reflect a highly integrated North American supply chain that benefits from geographic proximity, shared standards, and decades of commercial cooperation. Canadian companies leverage Texas’s scale, infrastructure, and market access to serve customers across the United States.

Canada is also a major investor in the state, with more than 270 Canadian-owned business establishments operating in Texas, supporting thousands of jobs across industries, including energy, manufacturing, technology, and services. This investment further strengthens the long-term economic partnership between Texas and Canada.

Trade, Infrastructure, and Connectivity

Texas’s infrastructure plays a critical role in supporting Canadian companies moving from Canada to Texas.

The state is home to 23 seaports, including multiple deep-water ports along the Gulf Coast that support global exports and North American trade. Texas also maintains the most miles of freight rail and state highways in the U.S., enabling efficient movement of goods across regions and borders.

International airports in Dallas–Fort Worth, Houston, Austin, and San Antonio provide direct and connecting access to Canadian cities, supporting executive travel, customer engagement, and cross-border talent mobility. Together, these assets make Texas a powerful logistics and distribution hub for Canadian firms serving U.S. and global markets.

How to Expand Your Canadian Business into Texas

For companies looking to invest in Texas from Canada, expansion typically begins with a confidential evaluation of market opportunities, locations, and operating costs.

Texas offers coordinated support through the Governor’s Texas Economic Development & Tourism Office (EDT), working alongside regional and local economic development organizations. These partners help Canadian companies navigate site selection, workforce planning, permitting, and incentive evaluation.

Through TxEDC, Canadian executives can explore foreign investment opportunities in Texas and gain a statewide perspective on regions, industries, and growth strategies. While TxEDC does not negotiate incentives directly, it helps connect companies to the appropriate public-sector partners for project-specific guidance.

Eligible projects may also benefit from Texas business incentives, including performance-based grants, workforce training support, and local tax programs tied to job creation and capital investment.

Canadian Success Stories in Texas

Canadian companies across a wide range of industries have successfully established and expanded operations in Texas.

Energy and clean-technology firms benefit from Texas’s leadership in oil, natural gas, wind, solar, and emerging hydrogen markets. Advanced manufacturers leverage the state’s skilled workforce, industrial infrastructure, and proximity to major customers. Technology and corporate services firms increasingly choose metros like Austin, Dallas–Fort Worth, and Houston as U.S. headquarters and innovation hubs.

These success stories highlight why Texas continues to attract companies moving from Canada to Texas as part of long-term North American growth strategies.

Discover Opportunities for Canadian Investment in Texas

From energy and advanced manufacturing to technology and services, Texas offers Canadian companies a powerful platform for U.S. expansion. To explore industries aligned with your growth strategy, visit Texas business sectors and connect with TxEDC to begin confidential conversations with the Governor’s economic development team.

FAQs

How can a Canadian start a business in Texas?

Most Canadian companies begin with market analysis and site selection, followed by entity formation and engagement with state and local partners for workforce, permitting, and incentive guidance.

What are the tax benefits for Canadian companies in Texas?

Texas offers no state corporate or personal income tax, along with sales and use tax exemptions for qualifying manufacturing and research equipment, helping lower overall operating costs.

Are there any grants or incentives for foreign businesses in Texas?

Yes. Incentives vary by project and location and may include workforce training grants, performance-based funding, and local tax abatements coordinated through EDT.

How does Texas compare to other U.S. states for foreign investment?

Texas consistently ranks among the top U.S. states for foreign direct investment due to its scale, infrastructure, workforce, export leadership, and stable business environment.