Who Are the Top Export and Import Partners of Canada
The main trading partners of Canada are Germany, the United States, Mexico, China, and Japan. The country is rich in natural resources such as timber, coal, crude bitumen, and natural gas. Other resources include diamonds, uranium, iron, and copper-zinc.
Export and Import Partners
The largest import markets are the U.S., United Kingdom, China, Germany, and Japan. The major export markets include countries such as Mexico, the United States, South Korea, and the United Kingdom. Emerging economies such as Vietnam, India, and Russia are also trade partners. Canada exports vegetables, paper, and wood pulp to India. Exports to China have grown significantly during the last years. Canada exports paper, pulp, minerals, gas, and oil. Russia and Brazil are also trading partners of Canada. Businesses export potash, chemical and mineral fertilizers, and chemicals to Brazil and electrical equipment, machinery, and animal products to Russia. Other trading partners of Canada are Norway, Algeria, the Netherlands, and Mexico.
Agreements and Partnerships
The country joined TTP, with members such as the U.S., Singapore, Peru, New Zealand, and Malaysia. The Trans-Pacific Partnership aims to facilitate trade between member countries. The main goal is to promote economic development, growth, and innovation. The country joined in 2012, along with Mexico. Canada has signed trade agreements with many countries, including Israel, Chile, Costa Rica, Peru, and Panama. It is also a member of the Canada-European Free Trade Association and the World Trade Organization.
Canada is also a major exporter of energy due to its considerable gas and oil reserves. Resources are mainly located in the Northern Territories, Alberta, Saskatchewan, and British Columbia. When it comes to agriculture, Canada is one of the major exporters and producers worldwide. Businesses export products such as seafood, agricultural products, and meat, including bison, venison, lamb, sheep, etc. The country is also the largest net exporter of pulp.
Dairy cattle is mainly shipped to Russia (about 40 percent of the total export). A large percentage of Canada’s meat, including beef and pork, is shipped to the United States. Canadian farmers also grow vegetables and fruits to produce juices, soups, sauces, marmalade, and other products. There are different farming practices such as shrimp, intensive, and factory farming, as well as multi-trophic aquaculture. The organic industry and organic agriculture are well developed.
Canada is also one of the world’s largest exporters of malt, with annual sales of around 500,000 tonnes. In general, most farm products are exported to Mexico, the European Union, China, and Japan. Wheat and canola oil are mainly traded on offshore markets.
Overall, the output has increased due to factors such as the growth of micro-farms, increased farm size, as well as the use of pesticides and fertilizers. The largest farms are located in Western Canada, with farmers producing barley, wheat, canola, and other oilseeds. Small farms are also found in Ontario, Quebec, and British Columbia. The main exporting destination for small and large farms is still the United States.
Products That Are Subject to Controls and Regulations
Some goods are subject to export controls, including peanut butter, sugar, firearms, and military goods. One of the goals is to ensure that munitions, implements, and arms are not exported. Canadian companies that export technologies and products of U.S. origin require a permit. Some products and goods are also subject to import controls, including steel, clothing and textiles, firearms, and agricultural products such as:
• Dairy products
• Chicken products
• Broiler hatching eggs
• Veal and beef
Certificates and import and export permits may be required depending on the product. Businesses pay fees to obtain permits. International import certificates may be required as well. Businesses must provide information such as brand, model, serial number, and name.
Businesses that export to the U.S., which is the main trade partner of Canada, must prepare a financial and implementation plan as well as a description of their products and activities. It is important to account for logistic and regulatory risk. Businesses also take into account factors such as packaging, border delays, shipping, travel insurance, and exchange rates.