Canadian imports

The Asia Pacific region’s share of Canadian import remained steady last year at 20.6% of the total.  Overall, the East Asian region captured 16.9% of Canada’s total imports, more than the 15% share of Europe in 2010.  Chinese imports to Canada, increased by $4.7 billion between 2009 and 2010, capturing half of all Canadian shipments from Asia. To some extent, the steady increase in Chinese imports is due to our other major Northeast Asian trading partners – South Korea, Taiwan and Japan – relocating their production facilities to China. Though the majority of Canadian imports are sourced from the United States, Asia as a region captures the largest proportion – 42% – of non-US Canadian imports.

Source: Trade Data Online. Industry Canada. 10 March 2011. http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home
Reproduced with the permission of the Minister of Public Works and Government Services Canada.

Canada enjoyed total trade growth of 11% with the world in 2010. Exports to the Latin America region increased 19%, while imports rose by almost 29%.  Canada’s total trade with Latin America saw the biggest increase of 26% in 2010. Canada’s total trade growth with the United States, Canada’s top trading partner, saw an increase of 10%. Of notable interest was the decline in Canada’s exports to the Other region (Middle East and Africa), at a decline of 12% is the only region that saw a decline in exports in 2010. Canada’s imports from Latin America and the Other region (the Middle East and Africa), increased by 29% and 26% respectively, the biggest increase in imports in 2010. Canada’s trade with the Asia Pacific region has remain relatively stable over the years and in 2010, the region has a total trade growth of slightly higher than the United States, at 10.9%. However, the dominance of the United States in Canada’s trade patterns is clear, as even a small percentage change in magnitude is much larger in dollar terms than double-digit percentage changes in other markets.

Source: Trade Data Online. Industry Canada. 15 March 2011. http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home
Reproduced with the permission of the Minister of Public Works and Government Services Canada.

The automotive sector, along with the oil and gas sector, account for the bulk of Canada’s imports represented in this table. The same may be said of exports. Perhaps the most remarkable feature of this data is the importance of automotive exports, as evidenced by the 10% share of total Canadian domestic exports that are represented by just one class of vehicle. The vast majority of Canada’s automotive exports are destined for the United States. Canada often chides itself for too heavy a reliance on primary (commodity) exports. To be sure, such exports are very important in our overall trade profile, as witnessed by the fact that they make up five of the top 10 exports in this table. Due to higher demand and prices, crude petroleum oil exports captured a 14% share of Canada’s exports to the world in 2010. But automobiles and their parts continue to be the most significant elements of Canada’s overall trade profile for a number of years.

Source: Trade Data Online. Industry Canada. 12 April 2011. http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home
Reproduced with the permission of the Minister of Public Works and Government Services Canada.

Notes: The table is based on Harmonised System (HS) codes at the 6-digit level. Commodities are assigned these codes in order that accurate trade records can be kept, tariffs collected appropriately, customs procedures followed, and so forth. The HS system of codes, at its most disaggregated, assigns a 10-digit code to a given item. As the degree of aggregation increases, the number of digits in the code decreases. Thus, for example, the 6-digit HS code assigned to a motor vehicle with a spark-type ignition and a cylinder capacity of more than 3000 cc is 870323. The 2-digit HS code (in this case it is 87) includes not only this type of vehicle, but also many other types of vehicles and a wide variety of vehicle accessories and parts. To learn more about the HS Code system used by Statistics Canada go to http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/h_00048.html.

The composition of Canada’s imports from Asia is essentially similar to Canada’s imports from the rest of the world, concentrated in the automotive and electronics sectors. Our exports to Asia feature a higher degree of concentration, and they are more heavily commodity-based, than are our exports to the rest of the world. Coal, oils, metals and wood and woodpulp items dominate, followed by agriculture products.

Source: Trade Data Online. Industry Canada. 12 April 2011. http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home
Reproduced with the permission of the Minister of Public Works and Government Services Canada.

Notes:

1. The table is based on Harmonised System (HS) codes at the 6-digit level. Commodities are assigned these codes in order that accurate trade records can be kept, tariffs collected appropriately, customs procedures followed, and so forth. The HS system of codes, at its most disaggregated, assigns a 10-digit code to a given item. As the degree of aggregation increases, the number of digits in the code decreases. Thus, for example, the 6-digit HS code assigned to a motor vehicle with a spark-type ignition and a cylinder capacity of more than 3000 cc is 870323. The 2-digit HS code (in this case it is 87) includes not only this type of vehicle, but also many other types of vehicles and a wide variety of vehicle accessories and parts. To learn more about the HS Code system used by Statistics Canada go to http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/h_00048.html.
2. For the purposes of this table, Asia is defined as: Australia, Bangladesh, Bhutan, Brunei, Cambodia, China, East Timor, Hong Kong SAR, India, Indonesia, Japan, Macau, Malaysia, Maldives, Mongolia, Myanmar, Nepal, New Zealand, North Korea, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam.

Canada generally runs large merchandise trade deficits with Asia Pacific. A regional trade deficit is not necessarily problematic, however, as we continue to run healthy bilateral surpluses with other trading partners and our current account remains positive. In 2010, both imports and exports increased – by 9.8% and 12.7%, respectively. Australia, Bangladesh, India and Singapore are the only economies that had a decline in exports, -2.3%, -5.2%, -1.7% and -20.8% respectively, in 2010. Our imports to Asia Pacific in 2010 - with the exception of Australia, Malaysia, New Zealand and Singapore - increased in 2010.

Source: Trade Data Online. Industry Canada. 12 March 2011. www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/home
Reproduced with the permission of the Minister of Public Works and Government Services.

Canada’s trade with Asia is quite volatile. There are some simple explanations for this variability, however, relating to the composition of our trade. Canadian exports to Asia feature a relatively heavy reliance on natural resource-based items, especially wood, and agricultural goods, and on big-ticket, infrastructure-related items like telecommunications equipment and aircraft. Sales of the first class of goods, which tend to be priced in relatively competitive markets, may be buffeted by sudden changes in competitiveness induced by exchange rate adjustments, or by the imposition or removal of a regulatory barrier either by Canada, by a customer, or by a competitor. Sales of the second class of goods are, by their very nature, quite lumpy, and sensitive to prevailing business conditions. On the import side, we source a considerable portion of our electronics purchases from Asia, including computers and computer components, semiconductors, and so forth. This sector also experiences considerable variation in demand, and that is reflected in our import demand. A final explanation has nothing to do with the composition of our trade. It is that Asia is in the midst of a process of integration, both within the region, and in the case of certain countries like China, into the global trading system. As investment flows shift and regional production structures adjust, our trade relationship with the region is very likely to experience some variability from year to year.

Source: Trade Data Online. Industry Canada. 16 March 2011. http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/home
Reproduced with the permission of the Minister of Public Works and Government Services.