Canada's exports diversify beyond the U.S.
Canadian businesses are successfully diversifying their export markets beyond the U.S.
While Canada’s exports to the U.S. still account for the large majority of exports — with 70% of Canadian goods and services still destined to the U.S market in 2012 — this share is down from more than 80% in 2000.
Conversely, Canada’s exports to markets beyond the U.S. have increased from a share of about 19% of Canada’s total exports in 2000 to about 30% in 2012.
This market diversification is the result of several factors:
- demand for Canadian exports has been supported by rapid economic growth in emerging markets, in particular for resource-related products, but also for non-resource-related products and services;
- relatively slower growth in the U.S.;
- the appreciation of the Canadian dollar; and
- intense competition from emerging countries (like China) in the U.S. market, all combined to restrict Canada’s exports to the U.S.
As a result, Canada’s export structure is more balanced geographically and better positioned to benefit from different sources of growth in the future.
For more information, visit Foreign Affairs and International Trade Canada’s Office of the Chief Economist.
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