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Monday, November 26, 2007

Spotlight: Canada-China trade

Restrained growth in imports

AS CANADA'S export markets have diversified, so too have the nation's sources of imports.

As of July 2007, a record-high 35% of imports came from countries other than the United States, compared with about 25% in 2002. Over half the increase in the market share from countries other than the United States is attributable to China.

Since 2002, China's share of Canada's imports has tripled to nearly 10% of total imports.

Canadian imports from China more than doubled between 2002 and 2006 to $35 billion, a slightly faster pace than Canada's exports to China. This is significant, given that imports from China were more than Canada's combined imports from Japan and Mexico.

Canada's imports from China grew only 17% over the first seven months of 2007 compared to the same period in 2006.

Canadian import values have been dampened by the stronger Canadian dollar vis-à-vis the Chinese currency, lowering Canada's import bill with China.

Essentially, this means that Canadian companies can import the same quantity for less. The increase of 17%, which occurred in spite of lower prices, suggests a large increase in imported volumes.

See also
Strong demand for natural resources THE DAILY -- Study: Trading with a giant: An update on Canada-China trade