China Overtakes Japan as Canada’s Third Largest Export Market in 2007

Canada further diversified its trade portfolio last year, as overseas advanced largely on the strength of growing trade with Britain, Norway and China.

Statistics Canada says overseas exports continued five years of growth, rising 17.4% last year, but Canada’s merchandise trade surplus nevertheless fell to its lowest level since 1999.

Merchandise exports increased 2.1% to $465.2 billion, while imports rose 2.8% to $415.8 billion; Canada’s annual merchandise trade surplus with the world fell to $49.5 billion.

Countries other than the United States represented more than a fifth of Canada’s export market in 2007.

Exports to China were responsible for nearly 20% of the total growth in Canada’s exports in 2007, as China overtook Japan as the country’s third-largest export market.

Imports from countries other than the United States also rose to more than 45% of Canada’s total imports last year, largely due to growth in shipments from China and Mexico.

In total, Canada’s merchandise imports and exports reached record highs in 2007 following the rapid appreciation of the dollar, the housing slowdown in the United States, and rising energy prices spurred by the soaring price of crude oil.

Summary data, and a link to the report, are on the Statistics Canada website.