Wednesday, December 2, 2009

International Trade

International Trade
Canada's Imports and Exports
International trade makes up a large part of the Canadian economy, particularly of its natural resources. Canada's exports are highly diversified; the principal export groups are industrial goods, forestry products, mineral resources (with crude petroleum and natural gas increasingly important), and agricultural commodities. Imports are heavily concentrated in the industrial sector, including machinery, transport equipment, basic manufactures, and consumer goods.
Canada's combined exports and imports ranked 8th among all nations in 2006. The United States is by far its largest trading partner, accounting for about 76% of exports and 65% of imports as of 2007. Currently, trade between the United States and Canada is essentially unhindered. Trade in goods and services between the United States and Canada accounts for approximately US $1.4 billion each day, almost equal to daily US trade with the entire European Union. In fact, the US–Canada trade relationship is the largest such economic association in history. Canada exports about 40 times more to the United States than to any other country, and imports about 14 times as much from the United States as from anywhere else.
Canada exported US$303.4 billion worth of merchandise to the United States in 2006, up 4.5% from 2005 and up 45% in just 4 years.
Canadian imports from the U.S. rose 8.7% to $230.3 billion in 2006, up 43.1% since 2002.
Canada’s largest trading partner is America, and America’s largest trading partner is Canada.
Sugar, zinc & precious metals are fastest growing Canadian exports to the U.S. while copper, gold & nuclear fuels are fast-growing imports into Canada from America.

Cars, trucks, and automobile parts, are the major exports of Canada (totaling 19.3%). Wood, paper, and paper products follow Canada's vehicle exports closely (totaling 14.6%).

Main industries
transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum and natural gas

$440.1 billion (2007 est.)

Export goods
motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment, electronics, chemicals, plastics, fertilizers, wood pulp, timber, crude petroleum, natural gas, electricity, aluminum

Main export partners
U.S. 78.9%, UK 2.8%, China 2.1% (2007)

$394.4 billion (2007 est.)

Import goods
machinery and equipment, motor vehicles and parts, electronics, crude oil, chemicals, electricity, durable consumer goods

Main import partners
U.S. 54.1%, China 9.4%, Mexico 4.2% (2007)
The top eight exports as of 2000 were as follows:

Passenger motor vehicles (15.4%)
Gas, natural and manufactured (5.4%)
Telecommunications equipment (5.1%)
Crude petroleum (4.7)
Motor vehicle parts and accessories (3.9%)
Paper and paperboard (3.8%)
Wood and cork (3.3%)
Non-ferrous metals (2.9%)
In 2000 Canada's imports were distributed among the following categories:

Consumer goods 13.0%
Food 4.6%
Fuels 5.2%
Industrial supplies 21.8%
Machinery 28.4%
Transportation 24.9%
Other 2.1%

Economic Sector:

Canada has considerable natural resources spread across its varied regions. In British Columbia, the forestry industry is of great importance, while the oil industry is important in Alberta and Newfoundland and Labrador. Northern Ontario is home to a wide array of mines, while the fishing industry has long been central to the character of the Atlantic Provinces. Canada has mineral resources of coal, copper, iron ore, and gold.
Canada is a world leader in the production of many natural resources such as gold, nickel, uranium, diamonds, and lead. The vast majority of these products are exported, mainly to the United States. There are also many secondary and service industries that are directly linked to primary ones. For instance one of Canada's largest manufacturing industries is the pulp and paper sector, which is directly linked to the logging industry.

Canada is one of the few developed nations that is a net exporter of energy. Most important are the large oil and gas resources centered in Alberta and the Northern Territories, but also present in neighboring British Columbia and Saskatchewan. The vast Athabasca Tar Sands give Canada the world's second largest reserves of oil after Saudi Arabia according to USGS.

Canada is also one of the world's largest suppliers of agricultural products, particularly of wheat and other grains. Canada is a major exporter of agricultural products, to the United States but also to Europe and East Asia.

Imports and Exports of Food

Canada's exports of processed food products exceed imports by about 30%. In 2003, Canada exported $16.8 billion worth of processed food products and imported $12.6 billion.
The food processing industry accounts for about 4% of Canada's merchandise trade. Canada has always been a major food exporter.
Meat products were Canada's single largest food industry export prior to May 20, 2003 and the discovery of BSE or mad cow disease. Canadians exported meat worth $5.2 billion in 2002 which represented 31% of the value of all processed food product exports.

The United States continues to be Canada's single largest export market, the destination for almost 75% of exports by the Canadian food processing industry up from 60% in 1995 and 54% in 1990 at the signing of the Canada United States Trade Agreement (CUSTA).
In 2002, Canada exported $46 million worth of food products to the United States and imported $34 million each day. This accounted for 5% of the approximately $1.7 billion in merchandise that traded daily between Canada and the United States.
Canada is experiencing continued growth in exports to Asia and achieving success in penetrating new Asian markets, such as China, where Canadian food exports have increased nearly 300% over the past 7 years, from $112 million in 1995 to $329 million in 2002. Japan continues to be Canada's second most important export market after the United States with food exports to Japan totaling $1.6 billion in 2002.
Canadian food imports increased from $8.1 billion in 1995 to $12.6 billion in 2002, a 57% increase.

There is significant import penetration in the Canadian seafood market. Canada imported over 60% of its domestic seafood product needs in 2001. At the same time Canadian seafood processors exported 74% of Canadian production. Canada also imported 41% of its sugar and confectionary products, 31% of its processed fruit and vegetables, and 31% of its milled grain and oilseed products.

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