OTTAWA -- The rate of Canadian exports
to China surpassed that of any other G7 country, and this year put
China neck-and-neck with Japan as Canada's third largest export market.
According to a recent report by Stats Canada in the Canadian Economic
Observer, Canada's exports to China surged 43 percent in 2007 from the
same period in 2006, while its imports from the Asian powerhouse rose
only 17 percent.
Merchandise exports to China in the first seven months of this year
have grown at more than twice the pace of its imports on the strength
of the Asian giant's demand for Canada's natural resources.
Accelerating Chinese demand, combined with higher world prices for
metals, potash and canola, boosted industrial goods and agricultural
exports. China also became Canada's number two export market for crude
Canada is clearly benefiting from the magnitude of China's demand for
natural resources, says StatsCan. The nation of more than 1.3 billion
people is expanding its manufacturing base and building massive
infrastructure projects, from ports and bridges to facilities for the
2008 Olympic Games. read more
China Leads Canada Trade Diversification:
Canada's declining exports the U.S. has been offset more
than enough by booming Chinese demand for metals and oil.
exports to Asia, and to a lesser extent, to Europe, resulted in nearly
one-quarter (24%) of Canada's exports headed to non-US destinations in
2007, compared with 16 percent just five years ago.
The recent shift to increased trade with the rest of the world was
well-timed, reports StatsCan, given the onset of the housing-induced
slowdown south of the border.
All regions of Canada have benefited from this shift in exports toward
non-US countries. In the cases of Ontario, Quebec, Nova Scotia, Prince
Edward Island, and Newfoundland and Labrador, the growth was more than
sufficient to offset declining exports to the United States.
For British Columbia, Manitoba, Saskatchewan and New Brunswick, exports
to non-US countries boosted overall exports beyond the more moderate
growth in shipments to the United States.
Alberta was the only province not to show an increased share of its
exports shipped to countries other than the U.S. -- mainly because
exports south of the border are growing as fast as those to non-US
countries, thanks to crude oil, Alberta's main export stateside.
Import Growth More Restrained:
Since 2002, China's share of Canada's imports has tripled to nearly 10
percent of total imports. However, such imports grew only 17 percent
over the first seven months of 2007 compared to last year, because
values have been dampened by the stronger Canadian loonie vis-à-vis the
Chinese currency. Courtesy of Today's Trucking