The Daily, Wednesday, April 24, 2002. Foreign affiliate trade statistics

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Foreign affiliate trade statistics

Canadian companies deliver services to their customers abroad primarily through their foreign affiliates and goods are supplied largely by exports, according to a new study of trade and investment statistics for 1999.

Canada is one of the world's most trade-oriented nations, and it is one of the most direct investment-oriented. Companies can choose to compete in foreign markets either by producing goods or services in Canada and exporting them to foreign markets, or by establishing a commercial presence abroad through foreign affiliates.

In 1999, Canadian companies exported $52 billion in services. However, sales for foreign affiliates in the services sector amounted to $124 billion, more than twice the amount of cross-border exports.

In contrast, exports of goods totalled $365 billion, and sales from goods-producing foreign affiliates amounted to $177 billion - just under one-half the cross-border exports.

Foreign affiliates of Canadian companies had total sales abroad of just over $300.4 billion in 1999, and employed about 772,000 people. Service providers accounted for about 40% of both sales and employment. About two-thirds of total sales were in the United States.

Four industrial sectors accounted for 63% of reported sales for service providers in 1999: information and cultural activities; finance; insurance; and transportation and warehousing.

The information and cultural activities sector accounted for about 25% of sales of services, and the finance and insurance sectors combined accounted for a further 28%.

The goods sector, in contrast, was dominated by foreign subsidiaries in manufacturing, which accounted for 81% of sales and 82% of employment.

For more information, or to enquire about the concepts, methods or data quality of this release contact Colleen Cardillo (613-951-3486; colleen.cardillo@statcan.gc.ca) or Art Ridgeway (613-951-8907; art.ridgeway@statcan.gc.ca), Balance of Payments Division.