sources of timber. Canada also has a sizable manufacturing sector centred in southern Ontario and Quebec, with automobiles and aeronautics representing particularly important industries.
Canada's economic integration with the United States has increased significantly since World War II. The Automotive Products Trade Agreement of 1965 opened Canada's borders to trade in the automobile manufacturing industry. In the 1970s, concerns over energy self-sufficiency and foreign ownership in the manufacturing sectors prompted Prime Minister Pierre Trudeau's Liberal government to enact the National Energy Program (NEP) and the Foreign Investment Review Agency (FIRA). In the 1980s, Prime Minister Brian Mulroney's Progressive Conservatives abolished the NEP and changed the name of FIRA to "Investment Canada", in order to encourage foreign investment. The Canada – United States Free Trade Agreement (FTA) of 1988 eliminated tariffs between the two countries, while the North American Free Trade Agreement (NAFTA) expanded the free-trade zone to include Mexico in 1994. In the mid-1990s, Jean Chrétien's Liberal government began to post annual budgetary surpluses, and steadily paid down the national debt.
The global financial crisis of 2008 caused a major recession, which led to a significant rise in unemployment in Canada. By October 2009, Canada's national unemployment rate reached 8.6 percent, with provincial unemployment rates varying from a low of 5.8 percent in Manitoba to a high of 17 percent in Newfoundland and Labrador. Between October 2008 and October 2010, the Canadian labour market lost 162,000 full-time jobs and a total of 224,000 permanent jobs. Canada's federal debt was estimated to total $566.7 billion for the fiscal year 2010–11, up from $463.7 billion in 2008–09. Canada's net foreign debt rose by $41 billion to $194 billion in the first quarter of 2010. However, Canada's regulated banking sector (comparatively conservative among G8 nations), the
