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.

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.

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.

In the first nine months of 2011, Canada’s trade with the 17 major economies in Asia increased 13.4% over the same period in 2010. Data shows China is Canada’s top export market, with seven other economies buying over $1 billion of Canadian goods. Hong Kong, Indonesia and Taiwan saw a huge increase in exports, 51%, 73% and 44% respectively, in the first nine months of 2011 over the same period in 2010. China continues to be Canada’s top import supplier, followed by Japan and South Korea. China is also Canada’s top Asian trading partner overall, valued at over $46 billion, more than double the trade with Japan. In the first nine months of 2011, Canada’s top three trading partners – China (including Hong Kong), Japan and South Korea – accounted for 74% of Canada’s total trade with Asia. Of notable interest is trade with Hong Kong and Indonesia, in the first nine months of 2011, increased 40% and 44% respectively, over the same period in 2010. While these trade figures are interesting, generalizations concerning the state of Canada-Asia trade should not be drawn from these data. Trade figures can be quite variable, and are subject to frequent revision, with factors that are quite unrelated to traditional economic factors (like reporting delays) contributing. For that reason, it is best to treat year-to-date figures as tentative, and indicative, rather than conclusive. Another point to make about this table is that the value of trade does not necessarily correlate with the magnitude of growth rates.

Source: Trade Data Online. Industry Canada. 10 December 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.