The Daily, Thursday, May 4, 2006. International merchandise trade: Annual review

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International merchandise trade: Annual review

In spite of the continued strength of the Canadian dollar, Canada's merchandise export values and volumes both hit record highs in 2005, according to a new publication which identifies and explains major trends in Canada's international merchandise trade for 2005.

In the latter part of 2005, there was a surge in energy export values as hurricanes in the Gulf Coast upset North American natural gas and crude petroleum supplies and sent prices soaring. The surge in prices pushed energy export values up 28.2%, guaranteeing energy the title of fastest growing export commodity for the year.

Energy was not the only story for 2005 as high-tech export volumes reached levels attained during the high-tech boom and automotive exports showed strength despite several firms restructuring their operations.

It was a year for records as import values and volumes also registered historic highs. Nearly two-thirds of the overall increase in real imports was attributed to a surge in demand for machinery and equipment as Canadian firms took advantage of low interest rates, historically high business profits, and a stronger Canadian dollar pushing down import prices.

For the first time ever, Canadian merchandise imports from Mexico ($14.6 billion) were higher than from Japan, moving Mexico from Canada's fourth to third largest source of imported products in 2005. Imports originating in China, which became the second largest source of imports in 2002, hit $29.5 billion in 2005, an increase of 22.3% over 2004.

Definitions, data sources and methods: survey numbers, including related surveys, 2201, 2202 and 2203.

The publication International Merchandise Trade Annual Review, 2005 (65-208-XIE, free) is now available online. From the Our products and services page, under Browse our Internet publications, choose Free, then Trade.

For more information on products and services, contact Jean-Marie Houle, (1-800-294-5583; 613-951-9647). To enquire about the concepts, methods or data quality of this release, contact Diana Wyman (613-951-3116), International Trade Division.