Which countries are fueling the Great White North's healthy trade surplus?
Canada exported goods worth some C$360 billion to the U.S. in 2005, which represents more than 80% of Canada's total global exports. Canada spent some C$250 billion on imports from the U.S. in 2005, some two-thirds of Canada's total imports.
However, it is important to note that the growth rate of Canada-U.S. trade is slowing. The value of goods delivered from Canada to the U.S. in 2005 increased only 3 percent from year 2000, while imports from the U.S. decreased 4 percent.
Countries in the European Economic Community (EEC) excluding the U.K. purchased $19 billion worth of Canadian exports in 2005 (4.2% of Canada's total exports). These same countries provided $29 billion worth of goods to Canada in 2005 (7.5% of Canada's total imports). EEC countries bolstered their consumption of Canadian exports by a healthy 14% over the past 5 years; Canada's imports from EEC countries increased about 40%.
Canadian exports to Japan were $10.5 billion (2.3%) in 2005, while Japan sent about $11.2 billion in imports to Canada (2.9%). Canadian exports to Japan decreased 7 percent in 2005 from year 2000, while imports from Japan decreased 4 percent.
Canadian exports to the U.K. in 2005 were $9.7 billion (2.1%), which slightly eclipsed the U.K.'s $9.1 billion in imports to Canada (2.3%). Exports to the U.K. showed a robust rise of some 33%, while imports from Canada's historical motherland decreased 26%.
The rest of the world including China and India bought $45 billion worth of Canadian exports in 2005 (10%), up almost 30% from year 2000. These emerging trade giants sold $79 billion worth of imports to Canada in 2005 (20%) growing some 60% from year 2000.
And The Winners Are...
As it stands now, the U.S. continues to keep Canada's surplus above water.
Canada ran a healthy surplus of over $100 billion trading with the U.S. in 2005, up over 17% from year 2000. Canada's surplus with the U.K. is much smaller, coming in at about $500 million. Canada's overall surplus in 2005 was some $65 billion.
However, Canada is running a deficit with its other major trading partners. Canadian deficits in 2005 with countries other than the U.S. and the U.K. was some $45 billion, more than double the comparable deficits which totaled $20.4 billion in year 2000.
Should Canada's deficits with major countries including China and India continue to expand, that amount could swell to a negative $130 billion in 7 years. This development could push Canada's overall balance of trade into the red even faster if the world economy goes into a recession.
Sources: Statistics Canada
