Study: Canada's trade with China

Canada's total merchandise trade with China has soared in the last decade, reaching $42.1 billion in 2006 and accounting for 5.0% of Canada's world trade. In 1997, China was Canada's fourth largest trading partner, with total merchandise trade of $8.7 billion. By 2003, the country had emerged as Canada's second largest trading partner, surpassing the U.K. and Japan. Imports from China were five times higher in 2006 than in 1997, while exports to the country had tripled.

A significant part of trade between Canada and China can be related to the globalization of production. In 1997, 34.3% of Canada's exports to and 37.6% of imports from China involved two-way trade within the same commodity groups. By 2006, with exports four times their 1997 level and imports more than eight times their 1997 level, the two-way trade accounted for over 45% of exports and over 57% of imports. Leading commodities in the two-way trade include: organic and inorganic chemicals; plastic and rubber materials; iron and steel and articles made of iron and steel; industrial and agricultural machinery and equipment; electronics; automotive equipment and parts; optical, photo, medical and surgical instruments; wood products, paper and paperboard; and fish products.

The commodity mix of exports to China has changed little in the last decade. Indeed, of the 30 leading commodities exported in 1997, 25 remained in the list of 30 leading commodities exported to China in 2006.

In 1997, China accounted for 1.8% of Canada's total imports of machinery and equipment (in classes 84 and 85 of the Harmonized Commodity Description and Coding System) from the world. Imports of machinery and equipment from China accelerated over the last decade and, by 2006, the country's share in Canada's total imports in that category grew to 13.6%. Imports from China in machinery and equipment also became more intensive between 1997 and 2006. The share of this commodity group in Canada's total imports from China advanced from 23.6% in 1997 to 40.5% in 2006.

The article, "Canada's trade with China: 1997 to 2006," is in the publication Canadian Trade Highlights (65-508-XWE2007001, free), now available from the Publications module of our website.

For more information on products and services, contact Sharon Nevins (toll-free 1-800-294-5583; 613-951-9798). To enquire about the concepts, methods or data quality of this release, contact Jafar Khondaker (613-951-9786), International Trade Division.